The lounge was a posh nightclub that often did very good business and provided Penguin with a perfect cover for his illegal activities. As the name suggests, it had an arctic theme with an artificial lake in the middle of the main room with an iceberg and real seals in it. Many of Gotham's criminals could be seen there including Joker and Rupert Thorne. Penguin also had a back entrance which he used for his illegal meetings.
The Penguin's regular staff for the Iceberg Lounge were several attractive women in bowler hats who doubled as his criminal henchmen. Though the Penguin usually avoided direct criminal activity once he began acting as a "Legitimate Businessman", he still found it necessary to use them as bodyguards or assassins.