The Shack, located south of Kenosha, opened on September 15, 1972, under new gay ownership. The low-profile tavern, formerly Lydia's, was popular among residents of Racine, Kenosha, and northern Illinois due to its discreet, out-of-the-way location. The Shack was very successful, despite its rundown appearance and harassment by gay bashers. In 1985, Lyons closed The Shack to open the more accessible and spacious Club 94.