HOUSTON, TX — Wholly owned subsidiaries of Rick’s Cabaret International, Inc. (NASDAQ:RICK) have completed the purchase of the Silver City Cabaret, an adult nightclub on Stemmons Freeway near Love Field, and related real estate. The acquisition brings to nine the number of clubs operated by subsidiaries of Rick’s Cabaret in the Dallas/Ft. Worth Metroplex.
The subsidiaries paid an aggregate total of $9.0 million for the club and real estate, with $1.0 million in cash and $8.0 million in the form of promissory notes payable over 11 years at an interest rate of 5.5 percent with a one-time adjustment provision.
“We have purchased both a fine gentlemen’s club in a terrific location as well as the potential to create a great new entertainment complex at the site,” said Eric Langan, president and CEO of Rick’s Cabaret. He noted that the club occupies just 14,000 square feet of a 54,000 square foot building that the company plans develop into a sports bar and after-hours nightclub.
Langan said he will announce a rebranding program for the Silver City Cabaret shortly, along with plans for a grand opening.
“Meanwhile, as of today, we are open with the famous Rick’s Cabaret-style of unmatched hospitality and service that characterize our clubs around the nation,” he added.
A related transaction involving property at 1449 Inwood Road in Dallas is expected to close next month.
