But Gardner maintains they are still good friends.

Gardner, the former controversial shock jock, released a statement on Friday saying he had elected to sell his share of the business to Mico to concentrate on his role as director of the Canberra Fringe festival early next year.

"I have had a wonderful time setting up the new Smith's this year and I hope it continues to prosper under the management of Dom," Gardner said. "Smith's Alternative has reinvented itself as one of the most vibrant, dynamic and unique cross-platform arts venues not only in Canberra, but in Australia. I like to think I had something to do with that."

The business, located in the historic Melbourne Building, saw the short-lived partnership between Gardner, the journalist and theatre producer no stranger to creating his own headlines and the quietly-spoken Mico, a former director of the Tuggeranong Arts Centre and former head of the National Multicultural Festival.

There have been suggestions the two had fallen out.

Gardner told The Canberra Times the pair remained "good friends" but had "just spent too much time together".

He was going on a "well-deserved holiday" and would return to Canberra to "make the Fringe a success".

Gardner's statement went on to read: "There are too many people to thank for their help on this journey but in particular I would like to acknowledge the beautiful Netti from April's Caravan for her support in the Smith's project, Jordan Best and Kaya Hinge for their great coffee, Bevan Noble for his great sound, all the Smith's staff and suppliers, Domenic Mico, all the musicians and artists - but most importantly the audience - thanks for turning up.

"To all those who I have had the enjoyment to have seen play, sing, act, dance, drink, eat, applaud, be appalled, fall over and buy stuff - I salute you.

"See you at my next project, - Fringe 2014, February 6-8 in venues in and around Canberra. Cheers."