Lakewood, Colo.-based VCG purchased the Diamond Cabaret for $6 million, as well as its wine and champagne inventory for approximately $187,000, from the estate of Bobby Rifkin, who for nearly three decades operated clubs in the Denver area before succumbing to cancer last year.
“Today marks a new beginning for the Diamond Cabaret but with a sincere perspective of where it began. My vision is for VCG to acquire premier adult nightclubs throughout the United States,” VCG CEO Troy Lowrie said. “This vision includes the essence of what Rifkin started."
The deal, which gives VCG control of five adult clubs in Denver, includes a three-year non-compete agreement with Rifkin’s business partners.
VCG, which owns and/or operates five nightclubs that feature exotic dancers, inked a licensing agreement earlier this year with Penthouse magazine owner General Media Communications Inc. of New York to use the Penthouse trademark for undisclosed terms.
PT's Showclub in the Denver area recently reopened as the Penthouse Club Denver. It shares the Penthouse name with existing Penthouse Clubs in Greenville, S.C.; Cleveland; Dallas; San Antonio, Texas; and New York City.
The company's subsidiary, International Entertainment Consultants, manages 15 clubs, including the five owned by VCG. Lowrie, who owns more than 60 percent of the company’s stock, is principal owner of the other 10 clubs.
VCG, which had revenue of $9.1 million in 2003, saw a 150 percent increase in sales growth last year. The company posted net income of $700,000.
The company’s business plan is to acquire existing strip clubs available for sale and refurbish them both in the interior and exterior.
In midday trading Wednesday, VCG’s stock was up by 10 cents at $3.15 on the Over-the-Counter Bulletin Board.
