After seven successful years, System Soundbar in the club district is shutting its doors forever with a final New Year's Eve bash hosted by DJ Danny Tenaglia.

Club managers Orin Bristol and Ryan Matchett say that after catering to the city's house, drum 'n' bass, hip-hop and techno locale, it's time to move on. The owners of the building have sold the Soundbar portion to another developer who plans to open, according to Systems spokesperson Stella Garcia, "a top 40s kinda club."

Which means now, that the 100 employees at the club will have to start looking for other jobs. Two weeks ago, they were told by their managers that the club was going to close.

"They just sold the space," says Garcia, "and of course, they were offered a lot of money."

No word on how much the building was sold for or who the new owners are. But expect construction at the site in the coming months. Superfunk Thursdays will move up the street to Privilege nightclub at 128 Peter.

A final press release emphasizes Systems was a venue built specifically for underground music. As they prepare for the close, "we do so with the knowledge that we've thrown some of the best parties this city has ever seen...we feel our greatest achievement is the sense of community that we helped to create, the feeling that you were surrounded by family, the sense of belonging that people had... like they were at home."

Expect the Tenaglia schindig to go well into the early morning hours. Garcia has a feeling that System Soundbar will go out with a bang reuniting those who've been faithful to the club for almost a decade.

System Soundbar is located at 117 Peter St. Advance tickets for the party are $75 (all inclusive) at Ticketmaster, 2 the Beat, Play De Record and System Soundbar. For more info. call (416) 408-3996.