Discontinued Operations

12 Months Ended

Sep. 30, 2011

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

O. Discontinued Operations

The accompanying consolidated financial statements reflect the following as discontinued operations as of and for the years ended September 30, 2011 and 2010.

The Company closed its Divas Latinas club in Houston in late September, 2009.  The Company owns the building location and the location is currently leased to a tenant.  There was no gain or loss on the closing of the club.

In March 2011, we made the decision to sell our Las Vegas location and, in April 2011, sharply reduced its operations in order to eliminate losses as we sought a buyer for the property.  The club was shuttered and the landlord took over the property in June 2011.  Therefore, this club is recognized as a discontinued operation in the accompanying financial statements and has recognized a loss on the closure of $2.0 million in discontinued operations.

In August 2011, we sold 60% of the membership interest in the entity that previously operated our Rick’s Cabaret in Austin, Texas.  Accordingly, we have deconsolidated the subsidiary and have carried it as an equity-method investment.  Accordingly, the club is recognized as a discontinued operation in the accompanying financial statements.

Following is summarized information regarding the discontinued operations:

Revenues of discontinued operations amounted to $2.6 million, $8.9 million and $10.8 million for the years ended September 30, 2011, 2010 and 2009, respectively.

(in thousands)	Year Ended September 30,
	2011			2010			2009
Loss from discontinued operations	$	(1,107	)	$	(914	)	$	(2,714	)
Loss on sale of discontinued operations		(2,270	)		(16,937	)		(1,049	)
Income tax - discontinued operations		1,182			6,248			1,317
Total loss from discontinued operations, net of tax	$	(2,195	)	$	(11,603	)	$	(2,446	)

Major classes of assets and liabilities included as assets and liabilities of discontinued operations as of:

	September 30,
	2011			2010
Current assets, including deferred tax assets	$	33		$	1,095
Property and equipment		76			2,889
Other assets		3			867
Current liabilities		(144	)		(278	)
Long-term liabilities		(33	)		(310	)
Net assets (liabilities)	$	(65	)	$	4,263

Loss on sale of discontinued operations above represents actual loss or impairment of the Las Vegas and Austin clubs   Impairment of the Philadelphia club is included in continuing operations in the year ended September 30, 2010.