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DeMange and Herman Stark, with Madden's blessing from Hot Springs, moved the Cotton Club downtown to Forty-Eighth Street and Broadway, to an area formerly occupied by the Harlem Golf iron. The new Cotton Club was an immediate success. It had its grand re-opening on September 24th, 1936. Cab Calloway and Bill "Bojangles" Robinson performed that night, as did Avis Andrews, the Berry Brothers,
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At the start of 1940, it was obvious how the Cotton Club, and Herman Stark, had money drawbacks. Besides the high Midtown rent and it is not treated of the Depression, the unions, specially the musician union, had a stranglehold on Stark and also his profits. Before his problems with the My friends and i.R.S., Stark was skimming money off the top help to make up for any shortfalls the unions along with the high entertainment payrolls caused. But with brand new watching the Cotton Club like a hawk, skimming was now impossible.