June 29, 2004 Rascals owner buying Fourth Street Live clubs Headliners Entertainment Group Inc., the New Jersey-based owner of the Rascals Comedy Club at Fourth Street Live, is buying two other clubs at the downtown development.
According to a news release from Headliners, the company has signed binding agreements to buy a chain of 10 dance clubs from JHF Properties LLC of Dublin, Ohio. The chain includes the Red Cheetah dance club and Parrot Beach bar at Fourth Street Live. The deal also includes clubs in Columbia S.C.; St. Louis; Miami; Tulsa, Okla.; Kansas City, Mo.; Omaha, Neb.; Jackson, Miss.; Cincinnati; and Tucson, Ariz., that operate under the names Banana Joe's, Margarita Mama's, Red Cheetah, Parrot Beach and Cactus Cafe.
Officials with JHF Properties and Headliners Entertainment could not immediately be reached for comment.
According to filings with the U.S. Securities and Exchange Commission, Headliners will pay about $6.5 million and more than 62 million shares to acquire the chain. The clubs generate more than $20 million in annual revenue with a 15 percent pre-tax profit, the release said.
The release said JHF's executives, Paul Butler and Jon Field, will continue to provide consulting and management services for the clubs for five years following the acquisition. The deal is expected to close "as soon as the audits of the financial statements of the clubs are completed," the release said.
Headliners Entertainment (OTCBB: HLNR), which formerly operated as Rascals International Inc., operates clubs in five cities. The company is based in Montclair, N.J.
© 2004 American City Business Journals Inc.
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