MINNEAPOLIS, July 7, 2011 /PRNewswire/ -- Rick's Cabaret
International, Inc. (NASDAQ: 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.
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http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)
The company was scheduled to finalize its agreed-to purchase of
Shiek'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 ir@ricks.com
or visit www.ricksinvestor.com.
Forward-looking Statements: 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.
SOURCE Rick's Cabaret International, Inc.