Rick's Cabaret owner buys Schiek's Palace Royale
Schiek's is sold.
The economy sputters along, but gentlemen's clubs seem to be doing OK.
Rick's Cabaret has announced that it's signed a letter of intent to purchase downtown competitor Schiek's Palace Royale for $3,050,000.
A subsidiary of Rick's will also pay $3,250,000 for the real estate on which Schiek's stands.
The transaction has a local feel, but both clubs are owned by parent companies with stock traded on NASDAQ.
Schiek's was part of the Colorado-based VCG Holding Corp., which owns 20 clubs around the country. According to the latest financials posted on its website, VCG posted Q3 revenues of $14.4 million. Rick's, based in Houston, owns 22 clubs. It posted revenues of $20.9 million for Q1 2011.
Rick's president and CEO Eric Langan said in a statement that the move is part of a corporate "clustering" strategy aimed at consolidating management and business efficiencies. Schiek's at 115 South 4th Street, while Rick's is around the corner at 300 S. 3rd Street.
And you thought all this was a simple as young ladies stuffing dollar bills into their thongs.
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