Rick's Cabaret Takes Steps To End Las Vegas Club Losses By Curtailing Its Operation (RICK)
Rick's Cabaret International (NASDAQ: RICK) said today it has sharply reduced operations at its Las Vegas location in order to eliminate losses as it seeks a buyer for the property.
"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," said Eric Langan, President and CEO of Rick's Cabaret. "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."
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.