The city revoked the liquor license of the Congress Theater in Logan Square.
Officials said the theater violated drug laws five times between 2011 and 2012, and accused the concert venue of breaking several building code violations.
Congress was also faulted for not reporting an instance of illegal activity at the theater on April 13, 2012. On that day police shut down a portion of Milwaukee Avenue after a fight erupted during a concert featuring Chicago rapper Chief Keef and other performers.
The theater is appealing the order, and liquor license rules allow a venue to continue its normal operation while an appeal is underway, said Jennifer Lipford, spokeswoman for the Department of Business Affairs and Consumer Protection.