April 06, 2005 08:00pm
Rick's Cabaret Sells Houston South
Source: Rick's Cabaret International, Inc.
by: Company Press Release
(HOUSTON, TX) -- 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. The transaction was completed on March 31, 2005.
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," said Eric Langan, CEO of Rick's Cabaret. "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.
About Rick's Cabaret Rick's Cabaret International, Inc. (Ricks.com) owns and operates upscale adult nightclubs serving primarily businessmen and professionals that offer live adult entertainment, restaurant and bar operations. The company owns, operates or licenses adult nightclubs in New York City, New Orleans, Houston, Minneapolis and other cities under the names "Rick's Cabaret," "XTC," "Club Onyx" and "Hummers." No sexual contact is permitted at any of these locations. Rick's Cabaret also owns an adult Internet membership Web site, CouplesTouch.com, and a network of nine online auction sites for adult products under the flagship URL NaughtyBids.com. Rick's Cabaret common stock is traded on the NASDAQ SmallCap market under the symbol Rick. For further information contact IR@Ricks.com.
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934 that involves significant risks and uncertainties, and is subject to the safe harbors created by this section. Important factors that could cause actual results for Rick's Cabaret to differ materially from those indicated in this press release include the risks and uncertainties as to the future operational and financial results of our Web sites, conditions relevant to real estate transactions, the future operational performance of our partners, the laws governing the operation of adult entertainment businesses, competitive and economic factors, dependence on key personnel and the ability to manage operations. Rick's Cabaret has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. Please refer to the documents Rick's Cabaret files from time to time with the Securities and Exchange Commission, in particular the most recent quarterly reports on Form 10-QSB and annual report on Form 10-KSB, which are available at the Company's website, Ricks.com.
Contact for further information: Allan Priaulx, 212-338-0050, IR@Ricks.com