HOUSTON, TX — Governments have used creative schemes to close or slow the opening of exotic dance establishments, but an actual government shut down is a new one, if not a successful one. Now that the state of Minnesota is once again open for business, Rick’s Cabaret International, Inc. has completed the acquisition of a Minneapolis gentleman’s club known as Schiek’s Palance Royale.
In addition to paying $2,875,000 for the club itself, Rick’s Cabaret has also purchased the real estate associated with the club at South 4th Street in downtown for another $3,250,000.
Closings on the transaction had been delayed because the shutdown of Minnesota state government offices had prevented issuance of required alcoholic beverage licenses, all of which have now been delivered. The Rick’s Cabaret subsidiary has begun operating the club, which will now be known as The Downtown Cabaret.
The acquisition brings to 22 the number of clubs in the Rick’s Cabaret group nationwide.
Eric Langan, president and CEO of Rick’s Cabaret said, “The Downtown Cabaret is a great location for us. We now have the top two clubs in the Minneapolis market, along with accompanying efficiencies in management, marketing and purchasing. We will be announcing details of our grand opening very soon and we think the market will be delighted with the changes we’ll be making.”
Rick’s Cabaret also operates a media division, ED Publications, and owns the adult Internet membership Website Couples Touch as well as a network of online adult auction sites under the flagship URL Naughty Bids. Rick’s Cabaret common stock is traded on NASDAQ under the symbol RICK.
For further information contact [email protected] or visit Ricks Investor.
