Rick's Cabaret a Victim of Minn. Gov't. Shutdown

MINNEAPOLIS — Gentlemen's club Rick's Cabaret has become a victim of Minnesota's government shutdown.

The publicly traded group of gentlemen's clubs says Minnesota's government shutdown, now in its second week, is preventing it from completing a transaction that would give it control of Shiek's Palace Royale, a popular Minneapolis gentlemen's club.

The company was scheduled to finalize its $2.9 million purchase of Shiek's Palace Royale from a subsidiary of VCG Holdings. But closing on the transaction has been delayed indefinitely because state workers are not available to issue required permits.

"We have received all the necessary approvals from the Minneapolis city authorities, but we haven't been able to obtain necessary state liquor permits because of the shutdown, and thus we can't finalize our acquisition," said Eric Langan, CEO of   Houston-based Rick's Cabaret International Inc. "As soon as the Legislature and Gov. Dayton work out their differences, the licensing bureaus will go back to work and we'll be able to put dozens of topless dancers on the stage and begin contributing much-needed tax dollars to the state coffers.

"We're ready to transform Shiek's Palace Royale into a venue that fits our profile of upscale facilities offering a premier entertainment experience. We just hope the state can resolve the current impasse so that we can finish this acquisition and get to work."

Rick's Cabaret operates nightclubs in New York City, Miami, Philadelphia, Charlotte, Dallas, Houston, Minneapolis and other cities operate under the names Rick's Cabaret, XTC, Club Onyx and Tootsie's Cabaret. It also owns Exotic Dancer and Storerotica.

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