UPDATE 1-Rick's Cabaret to take $20-$23 mln charge in 2010
* Charge related to poor performance of Vegas nightclub
* Shares down 8 pct in extended trade
Oct 29 (Reuters) - Strip club operator Rick's Cabaret International Inc (RICK.O) said it will take an impairment charge in fiscal 2010 due to its underperforming Las Vegas nightclub, which it bought in 2008, sending its shares down nearly 8 percent after the bell.
The charge, expected to be $20-$23 million, will also include lesser amounts from two other underperforming properties and will be recorded in the company's fourth quarter ended Sept. 30.
The company -- which reported $19.9 million in revenue in its third quarter -- said the charge will have no effect on its debt covenants and will not result in future cash expenditures.
Earlier this month, Rick's said it reached an agreement to restructure terms of a $10 million debt facility on its Miami gentlemen's club. The company also said it renegotiated terms of the property lease for the Las Vegas nightclub. [ID:nASA00RZ4] and [ID:nWNAB2370]
The company's shares were down about 8 percent at $7.00 in extended trading. They closed at $7.59 Friday on Nasdaq.
The stock has fallen 40 percent since the company's plans to buy rival VCG Holding Corp VCGH.O fell through in April. (Reporting by Abhishek Takle in Bangalore; Editing by Maju Samuel)
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