In 1988 the studio was taken over by Falconer. This was their second studio and was used predominantly for TV mastering, although during their 7 years of occupation many bands including Ash, Audioweb, Brand New Heavies and Salad recorded. In November 1998, Peter Codron and Adie Hardy of Magic Hat took over the studio. Having made no structural changes since it was originally built, the studio still retained it's original classic sound. Our mission was to offer our facilities to not only signed artists but be affordable to local unsigned artists as well. An incredible launch party in February 1999 was attended by hundreds including an unknown Pete Docherty, who wrote in his Books of Albion:
Went to a splendid party last week - t'was the opening of a studio in Kentish Town, Blur, Elastica et al on the guest list, Paul Kaye (Dennis Pennis) as DJ - Steve, Carlos & I myself went along and got rip-roaringly, arse-stonishingly wasted on a fine collection of free Booze and generous passing around of drugs. Pure, undiluted comedy ensued.
Sadly, despite much success the Hat had to close it's doors on 30th October 2000 and soon after the studio was demolished.