DENVER - VCG Holdings Corporation, a publicly traded operator of adult nightclubs, has completed its $5 million acquisition of La Boheme Gentlemen’s Cabaret, a 12,000 square foot strip club directly across from the Denver convention center.
“With this acquisition, VCG Holdings now has five Denver area locations, including the only two downtown locations in the city," said Troy Lowrie, chariman and CEO of VCG. "We expect all of our locations in Denver to have a very good year in 2008 [because of] a number of events occurring in the city, including the Democratic National Convention in August, as well as other major conventions.”
VCG has been on a buying spree this past year, acquiring 12 clubs in 2007. The purchase of La Boheme coincides with the corporation's end-of-year move from the American Stock Exchange to NASDAQ, and is indicative of VCG’s intent to cluster club locations in major metropolitan markets.
“This [clustering] technique allows key management to oversee multiple locations and gain efficiencies in our operations,” Lowrie continued. “We now have five locations in both Denver and St. Louis, and we expect to expand our cluster operating model to other cities during the next few years.”
La Boheme generates revenues of approximately $3.5 million and operating profits on a pro forma basis in excess of $1.4 million. The club hosts the annual Adult Film Star Ball, which celebrated its fourth year in 2007 with hosts Jesse Jane and Dave Navarro.