Rick's Picks Up Tootsies Cabaret for $25M

MIAMI GARDENS, FL-Rick’s Cabaret International Inc. has acquired the 47,000-sf Tootsies Cabaret adult nightclub for $25 million. This takes the Houston-based owner of gentlemen’s clubs’ total unit count to 15 and marks its entry into the Florida market.

Under the terms of the sale agreement, Rick’s purchased all outstanding shares in Miami Gardens Square One Inc. and Stellar Management Corp., Tootsies’ locally based owners, for $15 million in cash and $10 million in promissory notes, payable with monthly interest-only payments and a balloon payment of the principal due in three years. Rick’s also assumed leases on all of the clubs’ property that, with options, run through June 2034.

“We’re keeping the name Tootsies Cabaret,” a Rick’s spokesman tells GlobeSt.com. “There’s a lot of brand name equity in the club, and it does very well. We may, at some point, incorporate the Rick’s identity into the name.”