Minnesota Shutdown Claims Another Victim - Rick's Cabaret Delayed Purchase Of A Minneapolis Gentlemen's Club
MINNEAPOLIS - (July 7, 2011) – Subsidiaries ofRick's Cabaret International, Inc. [NASDAQ-GM:RICK], the publicly traded group of upscale gentlemen's clubs, says the Minnesota state government shutdown is preventing it from completing a transaction that would give it control of a popular Minneapolis gentlemen's club.
The company was scheduled to finalize its agreed-to purchase of Schiek's Palace Royale at 115 South 4th Street for $2,875,000 from a subsidiary of VCG Holdings. But closing on the transaction has been delayed indefinitely because state workers are not available to issue required permits.
"We have received all the necessary approvals from the Minneapolis city authorities, but we haven't been able to obtain necessary state liquor permits because of the shutdown, and thus we can't finalize our acquisition," said Eric Langan, President and CEO of the Houston-based Rick's Cabaret International, Inc. "As soon as the legislature and Governor Dayton work out their differences, the licensing bureaus will go back to work and we'll be able to put dozens of topless dancers on the stage and begin contributing much-needed tax dollars to the state coffers."
A subsidiary of Rick's Cabaret International presently operates Rick’s Cabaret at 300 S. 3rd St. in downtown Minneapolis. Mr. Langan said: "We're ready to transform Shiek's Palace Royale into a venue that fits our profile of upscale facilities offering a premier entertainment experience. We just hope the state can resolve the current impasse so that we can finish this acquisition and get to work."
About Rick’s Cabaret:
Rick's Cabaret International, Inc. (NASDAQ: RICK) is home to 23 upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, Charlotte, Dallas, Houston, Minneapolis and other cities operate under the names "Rick's Cabaret," "XTC," "Club Onyx" and "Tootsie's Cabaret". Sexual contact is not permitted at these locations. Rick's Cabaret also operates a media division, ED Publications, and owns the adult Internet membership Website couplestouch.com as well as a network of online adult auction sites under the flagship URL naughtybids.com. Rick's Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact [email protected] or visit www.ricksinvestor.com.
This document contains forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this document, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to the operational and financial results of our Web sites, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements are described in forms filed with the SEC from time to time and available at www.ricksinvestor.com or on the SEC's internet website at www.sec.gov. Rick's has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. For further information visit www.ricksinvestor.com.
Contact: Allan Priaulx, 212-338-0050, [email protected]