The Knitting Factory gave its audience poetry readings, performance art, standup comedy, and musicians who transcended the usual boundaries of rock and jazz, often experimental music.

The original location was in Manhattan at 47 East Houston Street, near to CBGB and within walking distance of The Bottom Line.

Dorf opened a new club location in Los Angeles in 2000 under the former parent company of Knitting Factory Entertainment, KnitMedia.

Jared Hoffman, the founder of Instinct Records, which was acquired by Knitting Factory Entertainment in 2002, took over as CEO of the company from Dorf in 2004.

[4] In July 2008 the owners announced their move to close the Manhattan location and move to a much smaller space in Williamsburg, Brooklyn at 361 Metropolitan Ave. At this new venue alternative comedy thrived, with many notable comedians gracing the stage including Hannibal Buress, Seth Herzog, Che Bridgett, Dan Ilic, and Pete Davidson.

[16] In August 2022 the Williamsburg location closed due to dramatic rent increases on top of significant revenue losses from the COVID-19 pandemic.

[19] The Knitting Factory New York reopened in the old Pyramid Club location on Avenue A, now called Baker Falls, on July 20, 2023.

The Knitting Factory gave its audience poetry readings, performance art, standup comedy, and musicians who transcended the usual boundaries of rock and jazz, such as the Lounge Lizards, John Zorn, Dewey Redman, Don Byron, Anthony Braxton, and Cecil Taylor.

In ten years the label issued over 200 albums that included music by Marilyn Crispell, Mark Dresser, Bill Ware, Roy Nathanson, Charles Gayle, Joe Morris, and Curtis Fowlkes.