Rick's Cabaret Completes Philly Club Purchase
Former Crazy Horse set to reopen as Rick's franchise April 24
Posted Mar 31st, 2008 12:08 PM by Peter Warren
— Leading adult club chain Rick's Cabaret International, Inc. (NASDAQ/GM: RICK) announced today that it has completed the purchase of the 25,000 square foot Crazy Horse Too Cabaret in Philadelphia, reports Business Wire.
In exchange for 195,000 shares of Rick's Cabaret stock valued at $23 per share, the company acquired 100 percent of the Crazy Horse Too outfit, and paid an additional $3.5 million for a 51 percent interest in the property itself.
The facility is located at 2908 South Columbus Blvd., just south of the sports venue where the Philadelphia Eagles, Phillies, 76ers and Flyers play their home games. It is scheduled to re-open as Rick's Cabaret April 24, with a three-day celebration showcasing new amenities including the well-reputed Rick's Cabaret steakhouse menu, a sports bar filled with big-screen TVs and new, luxury seating.
"The Rick's Cabaret nightclubs have become the national gold standard for adult entertainment venues, and we have spared no expense to make sure the Philadelphia club meets and exceeds expectations," said Rick's Cabaret CEO Eric Langan. "This club was a physical beauty before we acquired it and with careful upgrading, we've made it the finest club in the marketplace. We think all customers will be impressed."
Under the terms of the agreement with the Crazy Horse Too owners, Rick's Cabaret shares must be held for one year and cannot be pledged or loaned. After one year, no more than 25,000 shares may be sold in any 30-day period, and no more than 75,000 shares may be sold in any 90-day period.
Rick's Cabaret was one of the central club chains to suffer a major blow recently in Houston, Texas, when the U.S. Supreme Court refused to hear
the appeal submitted by the city's topless clubs challenging an anti-adult ordinance there. The battle between the clubs and the city had drawn on for 11 years.