A beloved bar in Gem Village just west of Bayfield says it will soon close after more than 40 years in business.

The Billy Goat Saloon, commonly known as “The Goat,” announced in a post on its Facebook page Saturday morning that its final day of operations will be Aug. 11. The saloon cited rising insurance costs and threatened trademark litigation as reasons precipitating the closure.

“This cherished establishment has been an integral part of the Southwest Colorado community for over 40 years,” the post said.

It has become increasingly difficult for owner Ashleigh Tarkington to run the business, she said in an interview Monday. She’s facing litigation from another establishment with a similar name, which is accusing the saloon of infringing on a trademark and creating brand confusion.

Tarkington said she stands accused of trademark infringement despite owning the rights to the artwork for the saloon. It is not unusual to see patrons or longtime fans of the saloon walking around Bayfield or Durango sporting the goat design on a T-shirt or other bar merchandise.

Tarkington did not specify the costs she has incurred in legal fees, but she said the litigation is bleeding her dry.

Tarkington also would not reveal the name of the company involved in the lawsuit for fear of further legal repercussions.

“We are in two very different geographic locations with two very different logos, and we have been coexisting for more than 40 years, and I don't know why, but they are a giant, powerful corporate entity, and I can no longer fight them,” she said.

It has also been tough for the business to maintain a modest cost for insurance. The price of insuring The Goat has quadrupled and liquor liability rates have multiplied by 12 over the last year, Tarkington said.

The bar is still suffering from the lasting impacts of a 2022 car crash caused by a woman who was driving under the influence of alcohol after leaving the Billy Goat Saloon, killing both the driver and a 47-year-old woman in the other vehicle.

Tarkington said the incident was horrific and terrible.

The bar was never found liable for the crash but insurance companies still have kept their distance.

“We're considered high-risk, and we have been under the gun trying to shop for new insurance,” she said.

The saloon owner was able to find one company. But after consistently seeing high rate increases year-over-year, Tarkington became tired of fighting battles to keep The Goat alive.

Much like other businesses in the region, Billy Goat Saloon has struggled to find labor, adding yet another hurdle.

The bar employs three full-time employees.

“I spent 23 years promoting what I built, and I'm just out of gas,” she said.

The business located along U.S. Highway 160 has become something of a staple in La Plata County.

Over the last 23 years, Tarkington has been able to expand the business into selling retail products.

Most notably, Tarkington’s “Hair of the Goat” Bloody Mary mix was featured in Forbes Magazine in June 2020. She said almost all of her Billy Goat Saloon merchandise has been purchased since the news broke Saturday.

The Goat’s structure was built in 1952. It initially operated as a café and service station until 1958, when it transformed into a bar.

It would officially become the Billy Goat Saloon in 1982. Tarkington purchased the business from Bob and Ellen Asher in 2001 after working there for two years while she attended Fort Lewis College.

She said an ideal situation is for someone to take over the bar and rebrand it. She even suggested that a new owner could officially rename the business “The Goat” and avoid trademark conflicts.

“Somebody with a clean slate could get normal insurance,” Tarkington said.

Since Saturday’s announcement, there’s been an outpouring of community support and residents reaching out to see if they can help save the bar.

She said those who are interested in purchasing the business can contact billygoatsaloon@gmail.com for more information.

The bar will host a final celebration on Aug. 11.

“It's very flattering that everybody wants to get their last hurrah and get their last shirt or get a picture,” Tarkington said. “It's been humbling.”

mhollinshead@durangoherald.com; tbrown@durangoherald.com