The shop was closed at the beginning of 2017, under new legislation requiring 28 coffeeshops in Amsterdam located within 250 meters of schools to close. The owner Johnny Petram protested that the school near to his shop was a hairstyling academy with students generally over the age of 18, but the Amsterdam government still required its closure. This is as part of a deal with the national government that exempts Amsterdam from enforcing the requirements used in other parts of the Netherlands which bans foreigners from coffeeshops. Petram stated his hope that he would be able to reopen Mellow Yellow at a new location.