Las Vegas Sun Newsthe economy:
Rick’s Cabaret adult club shuts down in Las Vegas
Facebook
Fark
Digg
Reddit
StumbleTuesday
12 April 2011
4:38 p.m.
Updated
12 April 2011 5:56 p.m.
Rick's Cabaret
Rick's Cabaret International Inc. said today it has shut down its Las Vegas topless dancing club in order to eliminate losses as it seeks a buyer for the property.
The last day of regularly-scheduled business for Rick's Cabaret in Las Vegas was Monday, though the property at Desert Inn Road and Valley View Boulevard may reopen from time to time for special occasions, a spokesman said.
“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,” Eric Langan, president and CEO of Rick’s Cabaret, said in a statement. “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.”
Allan Priaulx, a spokesman for Houston-based Rick's, said the club struggled to make money given the high marketing costs needed to attract customers. He didn't want to elaborate, but it's well known that marketing costs for the industry have soared in Las Vegas in the form of cash paid to taxi drivers as an incentive to steer business to the clubs.
Priaulx also noted a decline in business from high-spending male travelers to Las Vegas and from locals.
He didn't know how many employees were affected by the closure, but said hundreds of dancers -- independent contractors -- were affected by the shutdown.
Rick’s Las Vegas lost approximately $370,000 in the 2010 fourth quarter on revenue of $1.1 million vs. a year-earlier loss of $500,000 on revenue of $3.1 million, the company said in a regulatory filing.
In responding to a 2010 lawsuit, Rick's charged it had purchased the club based on misleading financial information.
Share
Join the Discussion:
Previous Discussion:
Discussion 2 comments
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
Most Popular
- Swinger blocked from operating sex club gets another day in court
- Skorkowsky appointed CCSD superintendent in unanimous vote
- On top of big salaries, companies like Wynn Resorts pile on perks for CEOs
- Developer breaking ground on an office project — a rarity these days
- Metro IDs former MLB all-star Jose Canseco as suspect in sexual assault
Lack of expendible cash hits again. No end in site.
This publicly traded company could have finally given us the financial statement line item I've wanted to see; REVPAT- REVenue Per Available T*****!
Seriously, I would think there is some kind of marketing angle they could use about being publicly traded and not paying taxi comissions. Something like "Clean Owners-Dirty Girls! Lowest Price Lap Dances In Town!"
Damn it, where's the full size of that image? ARRGH
In hard times who wants to throw money at half naked women?
definitely better clubs in town.
Doomed to fail from the start with a name like Rick's. Sounds very Boogie Nights 70's pornish. Rick Rick Rick Rick...
"He didn't want to elaborate, but it's well known that marketing costs for the industry have soared in Las Vegas in the form of cash paid to taxi drivers as an incentive to steer business to the clubs."
Well if Ricks didn't give a reason, then why make one up? After all, the Sun is a financial failure too. Is that also the fault of the Taxi drivers?