In February 1990, Cheri's Back East became Club 3054, which offered Madison an enormous dance floor upstairs and Wings, a scandalous leather bar downstairs.

Club 3054 endured constant police harassment. Undercover police claimed to see men having unprotected sex during "Underwear Night" events on February 24 and April 7, 1994. In July 1994, the City of Madison declared the bar a "disorderly house," revoked the liquor license for 90 days, and charged Cheri with multiple code violations. Negative publicity impacted not only her business, but her health and well-being. Cheri received numerous threats, by phone and mail, and was also harassed in person.

In October 1994, Cheri surrendered her liquor license and moved to San Francisco. The building was put up for sale and later demolished.