PROVIDENCE -- The Foxy Lady will be allowed to reopen as a nightclub, without an adult entertainment license, as it appeals its closure by the city of Providence, the state Department of Business Regulation ruled Monday.

A hearing officer gave the Foxy Lady permission to open on the condition that it first meet with the Providence Board of Licenses to discuss a business and security plan.

That means the Foxy Lady, in business for nearly 40 years, will be able to open up as a nightclub instead of as a strip club until the Department of Business Regulation can make a full ruling. The department director signed off on the decision granting the stay Monday.

It’s unclear when the Foxy Lady will be able to meet with the Board of Licenses and reopen.

The state Supreme Court rejected the Foxy Lady’s attempts to get its adult entertainment license back when it appealed its permanent closure. It will have another chance to get its adult entertainment license back when the court meets in full after the new year.

The Providence Board of Licenses last week revoked all of the Chalkstone Avenue club’s licenses last week after three prostitution arrests there. The club appealed the loss of its liquor license to the Department of Business Regulation and the loss of its adult entertainment license to the state Supreme Court.

Tammy Kruwell, who worked at the Foxy Lady as a "rub girl" -- welcoming patrons with shoulder and neck rubs -- was elated to hear the news, even though she wasn't sure exactly what it would mean for her and her colleagues.

“It’s progress," she said. "I’m excited to see things moving forward. I haven’t spoken to any of my co-workers or the Foxy family yet, but I’m excited to see where this goes."