Rick’s Cabaret International, Inc. [RICK: NASDAQ] said today it has sold its Houston South club for $550,000 to MBG Acquisition LLC, a Delaware limited liability company.
As part of the purchase agreement, the club at 15301 Gulf Freeway in Houston will immediately be renamed by the new owners.
“We divested the Houston South location because it no longer matched the profile for our flagship brand, which is larger upscale clubs located in busy travel and commercial centers,” Rick's Cabaret CEO Eric Langan said. “We are exploring other possibilities for an additional Rick’s Cabaret in the Houston market that will be in line with our corporate strategy.”
Rick’s Cabaret operates several other clubs in the Houston market, including Rick’s Cabaret North, a large club near Houston International Airport; Club Onyx, a newly renovated club in the Galleria section that caters to urban gentlemen; an XTC Cabaret all-nude club in North Houston, and a dual-use venue near Hobby Airport that includes an XTC Cabaret and Hummers Sports Bar.
The company also owns a Rick’s Cabaret in Minneapolis, manages a 30,000-square-foot club in Charlotte with an option to buy, and has purchased a club in midtown New York City that will open this summer as a Rick’s Cabaret. A Rick’s Cabaret on Bourbon Street in New Orleans operates as a licensed club.
