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Rick’s Cabaret Pulling Out of Las Vegas

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from www.online.wsj.com – Strip-club operator Rick’s Cabaret International Inc. said Tuesday it will sharply curtail its Las Vegas operations and seek a buyer for the money-losing property.

“We do not believe the Las Vegas market itself will return to its former strength in the near future,” Rick’s Chief Executive Eric Langan said in a press release, adding that the Houston-based chain did “everything possible” to turn the club around after buying it in 2008.

Housing prices and employment in Las Vegas were hard hit by the recession and have hardly recovered. The U.S. gaming market is also struggling to regain traction.

Mr. Langan said the company’s Las Vegas move will result in a revenue decline, but said the bottom-line benefit “will be immediate,” with potential tax benefits to follow.

Rick’s operates 22 upscale nightclubs, including sites in New York City, Miami, Philadelphia, New Orleans, Charlotte, N.C., Dallas, Minneapolis and Houston.

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