Goalie Entertainment Holdings owner Edward Wedelstedt has agreed to sell his Romantix Adult Superstores chain and his M&M Distributors operation to an unspecified investor group.
Wedelstedt, who is serving a 13-month prison sentence in Colorado, said through a spokesman that the sale will be finalized Aug. 14.
It was unclear why Wedelstedt agreed to sell his business.
“Mr. Wedelstedt was pleased that the principal corporate operations will remain in Denver, Col., and that the company will continue intact, building on its long, successful history,” the spokesman said in a statement.
Other terms of the deal were not disclosed.
In March, Wedelstedt was sentenced to 13 months in Englewood Federal Prison Camp in Englewood, Col. after he pleaded guilty to one count of obscenity in November. He was also ordered to pay $325,000 in restitution to the Internal Revenue Service.
Terms of the plea deal required Wedelstedt to sell his business assets in Texas where he was formally charged.
In November, Wedelstedt pled guilty to charges of interstate transportation of obscene material and to tax evasion as part of a 23-count indictment involving obscene material. Under the deal, the other 21 charges were dismissed.
Most of the counts involved interstate transportation of obscene material for the purpose of sale or distribution, engaging in the business of selling or transferring obscene matter, the aiding and abetting of the transportation, the sale and distribution of obscene material.
Goalie Entertainment is made up of 68 adult video and novelty stores offering a variety of sexually explicit magazines and videos, as well as the latest in adult toys, multi-channel video arcades, and private preview rooms.
The company has stores in California, Colorado, Connecticut, Illinois, Indiana, Iowa, Kentucky, Michigan, Nebraska, Nevada, North Dakota, South Dakota, Tennessee, Texas and Wyoming.
According to documents, Wedelstedt managed and operated several adult video and bookstores in Tarrant and Dallas counties which also offered arcades showing videos considered obscene in those counties.
During his trial, Wedelstedt admitted not reporting cash revenue generated by the electronic arcades, leading to his conviction for tax evasion.
