Rick’s Cabaret International Inc. Takes Steps to End Las Vegas Club Losses by Curtailing Its Operation
We have done everything possible to make this location viable since its acquisition in 2008 and we now believe it is in our shareholders’ best interests not to continue these efforts
Rick’s Cabaret International, Inc. (NASDAQ: RICK) said today it has sharply reduced operations at its Las Vegas location in order to eliminate losses as it seeks a buyer for the property.
“We have done everything possible to make this location viable since its acquisition in 2008 and we now believe it is in our shareholders’ best interests not to continue these efforts,” said Eric Langan, President and CEO of Rick’s Cabaret. “We do not believe the Las Vegas market itself will return to its former strength in the near future, and thus it is more logical for us to use our financial and management resources to focus on viable acquisitions and grow our other properties. While the curtailment of operations in Las Vegas will result in a top-line revenue decline for the company, the bottom line benefit will be immediate, and we will make use of potential future tax benefits.”
“We have done everything possible to make this location viable since its acquisition in 2008 and we now believe it is in our shareholders’ best interests not to continue these efforts”
About Rick’s Cabaret
Rick’s Cabaret International, Inc. (NASDAQ: RICK) is home to 22 upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, New Orleans, 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.
Logos, product and company names mentioned are the property of their respective owners.
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