Century Grill shuts down reception?

My fiance and I had this great idea to have a very small reception for the key friends in our life, and make it as opulent as T would have LIKED the wedding to be. So two months ago we booked and pre-authed the payment on our credit card. Sounds like we have a solid commitment for 31 people on July 22nd from them.

So T calls me today and tells me that the booking agent from Century Grill called, and told us we can't have the restaurant on that day, because Champ Car needs it. Now I would understand if they had told us prior to booking that it was not available, I would probably even understand if they had cancelled on us prior to use putting down the credit card. But we clearly had an informal contract with these people, and we dedicated a couple large of credit towards it. They have offered another room that is smaller, less appealing, at a different restaurant downtown. So the location, room, parking sucks, and now I feel like I'm being screwed/used/abused.

We of course haven't accepted the other room yet, I still think we need to fight for this. We have however started looking at other locations, and if this goes the way I hope it won't, I'll have to write a letter to the Journal, Sun, and BBB, and use the ever powerful word of mouth to keep this story shared.

Is it too much for businesses to keep commitments?