REHOBOTH BEACH, Del. — The Swell Tiki Bar and Grill, located on Rehoboth Avenue Extended, suffered fire, smoke and water damage following a fire in the early morning hours of Sept. 4, just before the start of the Labor Day weekend, traditionally one of the busiest of the year in Rehoboth Beach.

Located at the entrance of Rehoboth Beach, near where Route One intersects Rehoboth Avenue, the Swell, on the site where Big Sissies used to be, had gained a following among the lesbian crowd but served as well as the Tuesday evening gathering place for many local gay men.

The fire, which was confined to the roof, attic and ceiling of the newest LGBT establishment in Rehoboth Beach, was caused by an electrical problem and occurred after it closed its doors for the evening. There were no injuries.

According to Helen Fausnaught, owner of the establishment, the State Fire Marshal felt that past track lighting under the insulation and connecting old and new wiring in the past had caused the blaze. The building was constructed in 1978 and the part of the building where The Swell is located has had several incarnations, including operating as two establishments with separate air and heating units and entrances.

Although initial estimates were that damage was about $75,000, Fausnaught indicated that because they were preparing for a busy weekend and stored their food in the attic, that number may be low.

Fausnaught is hopeful she can get the establishment, which opened on May 11, to reopen within about a month.

Fausnaught and others felt that after a slow start the business was becoming more popular and losing a holiday weekend and beyond would be a big blow to its growth.