HOUSTON, Nov. 2, 2018 /PRNewswire/ -- RCI Hospitality
Holdings, Inc. (Nasdaq: RICK) today announced subsidiaries have
completed the acquisition of VIP's Gentlemen's Club and its real
estate at 1531 N. Kingsbury St. in Chicago on the same terms as previously
announced.
Plans include renaming the club Rick's Cabaret; positioning it
as a premier establishment similar to the No. 1 Rick's location in
New York City, which attracts
local, national and international guests; opening three hours
earlier, at 4 PM, in the coming
weeks; and opening for lunch in early 2019.
"Chicago is perfect for the
Rick's brand," said Eric Langan,
President & CEO of RCI. "It is a major metro market and
business hub, features leading teams in pro sports, and is a top
convention city. With its ability to generate $2 million annually in adjusted EBITDA, this
location also fits perfectly with our goal of acquiring profitable,
cash-flowing number one locations."
The 10,000-square-foot upscale club is one of only three in
Chicago and the only one with a
full liquor license. It has grandfathered use and has been one of
the top venues of its kind in the Midwest since 1993. Open until 4
AM Sunday through Friday nights and 5 AM on Saturday nights, the
club is near Chicago's chic
Lincoln Park neighborhood and
minutes away from the city's renowned North Michigan Avenue and
Gold Coast.
Consideration for the club was $2.0
million in cash and $4.5
million in 7.00%, 6-year, fully amortizing seller financing.
Consideration for the real estate, which consists of the building
and land, was $4.0 million in cash.
The cash portion of the transactions was funded through available
cash, which includes cash from operations, proceeds from a
$5.0 million unsecured bank term
loan, and third-party debt financing, as previously announced.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 units, RCI Hospitality Holdings, Inc., through
its subsidiaries, is the country's leading company in gentlemen's
clubs and sports bars/restaurants. Clubs in New York City, Miami, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, St.
Louis, and other markets operate under brand names such as
Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars, Tootsie's
Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate
under the brand name Bombshells Restaurant & Bar. Please visit
http://www.rcihospitality.com.
Forward-Looking Statements
This press release may contain 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 press release, 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 cybersecurity, 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. The company has no
obligation to update or revise the forward-looking statements to
reflect the occurrence of future events or circumstances.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or
gary.fishman@anreder.com and steven.anreder@anreder.com
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SOURCE RCI Hospitality Holdings, Inc.