MINNEAPOLIS, Minn.—Rick’s Cabaret International Inc. has announced that it has signed a letter of intent to purchase a Minneapolis gentlemen’s club currently owned by VCG Holding Corp. The club, Schiek’s Palace Royale, is located downtown around the corner from an existing Rick’s Cabaret.
The total deal, according to an announcement issued by Rick’s today, is worth more than $6 million. The acquisition, subject to the execution of definitive documents, will set Rick’s back by $3,050,000. In addition, according to the announcement, “a subsidiary of Rick’s Cabaret will pay $3,250,000 to acquire the real estate where Schiek’s Palace Royale is located.”
The announcement further states that the letter of intent calls for signing of definitive documents on March 15, with a closing five business days after all licenses for an adult cabaret to serve liquor and conduct topless entertainment have been satisfactorily issued to Rick’s Cabaret. Once completed, the acquisition of Schiek’s would bring to 23 the number of clubs in the Rick’s Cabaret group nationwide.
“This acquisition gives us a terrific package of gentlemen’s clubs in the Minneapolis area,” said Eric Langan, president and CEO of Rick’s Cabaret. “It is consistent with our program of ‘clustering’ clubs to increase management, marketing and purchasing efficiencies. It is within our target for immediate accretion to our earnings, and the venue fits our profile of upscale facilities offering a premier entertainment experience.”
Schiek’s Palace Royale is located at 115 S. Fourth St. in Minneapolis.
