Rick's Cabaret International Sells It's "Houston South" Club
HOUSTON--(April 6, 2005)--Rick's Cabaret International
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.
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.
Rick's Cabaret International, Inc. (www.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,
and a network of nine online auction sites for adult products under
the flagship URL www.naughtybids.com.
Rick's Cabaret common stock is traded on the NASDAQ SmallCap market
under the symbol RICK. For further information contact [email protected].
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, www.ricks.com.
Contact for further information: Allan Priaulx, 212-338-0050, [email protected]