The club was operating in violation of the city's regulations and was ordered to vacate the premises based on building and fire code deficiencies. This incident was the worst fatal fire in New York city since the Triangle Shirtwaist Company fire in 1911, and the worst in the United States since the Beverly Hills Supper Club fire in 1977.

Factors contributing to the loss of life include the following:

The existing automatic sprinkler system was not extended to the first floor, and one of the branch lines on the second floor was plugged, further limiting coverage on the second floor.
Doorways from the building were positioned at the north and south ends of the front of the club and discharged onto the sidewalk. The south door was the main entrance and the only available exit for patrons.
The incendiary fire located at the entrance immediately blocked the only available exit from the club. In addition to the accelerant, combustible interior finish was a factor in fire and smoke spread beyond the area of origin. As a result, smoke and heat quickly spread to the second floor, via open stairs, where most of the victims were found.

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