They had initially planned to reopen the establishment .
After an audit revealed that Hendrix had incurred exorbitant fees by block - booking lengthy sessions at peak rates they decided that the building would better serve them as a recording studio .
They had initially planned to reopen the establishment , but after an audit revealed that Hendrix had incurred exorbitant fees by block - booking lengthy sessions at peak rates they decided that the building would better serve them as a recording studio .