Five Popular Colorado Strip Clubs Have Been Sold

Five popular strip clubs in Colorado have recently been sold.

The group that previously owned the clubs was led by a man named Troy Lowrie who also owned a total of nine clubs across the United States and has sold them to another group out of Houston, Texas known as RCI Hospitality Holdings Inc. The sale was announced this morning, Monday, July 26th, 2021.

The clubs that were sold include Denver's Mile High Men's Club, PT's Showclub Centerfold, The Diamond Cabaret, PT's Showclub, La Boheme, as well as six other clubs in states other than Colorado.

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While it may seem like a sudden move, this deal had been discussed and on the table since 2010, when RCI, which stands for Rick's Cabaret Inc., agreed to a $45 million deal with the previous owners.

However, the deal fell apart partly because of the COVID-19 pandemic but was reintroduced in November of 2020.

Now, a total of 11 clubs, including the aforementioned five Colorado clubs, will be purchased for $57 million.

Luckily for the employees of the Colorado clubs, the new owners do not plan on changing the nature of the businesses or replacing any of the staff as of now, which was revealed in a recent statement by RCI Inc.

RCI's president and CEO, Eric Langan, had this to say about the new deal:

This is exactly the type of acquisition we want, all the clubs are well-established and proven cash generators. Troy (Lowrie) and his team should be recognized for their accomplishment. We believe the quality of the clubs’ licenses and locations, and our ability to acquire all 11 in one transaction, make this acquisition worthy of a premium in line with our capital allocation strategy.

[BizJournals.com]