RCI Hospitality (US:RICK) Benzinga·2025-12-01 09:59Core Viewpoint - RCI Hospitality Holdings Inc. is undergoing significant management changes amid ongoing legal and regulatory challenges, including a recent $30 million stock buyback from a major shareholder [1][3]. Management Changes - CEO Eric Langan and CFO Bradley Chhay are stepping down, with Travis Reese and Albert Molina appointed as interim CEO and CFO, respectively [2]. - Langan will remain on the board, while Chhay will continue to be employed by the company [2]. Stock Buyback Details - The company announced a $30 million stock buyback to acquire 821,000 shares from hedge fund ADW Capital Partners at a 50% premium, paying $36.54 per share compared to the current market price of $24.36 [3][4]. - The buyback includes $8 million in cash and $22 million in two-year seller financing at 12% [4]. Legal Issues - RCI Hospitality and five executives face indictments for multi-million dollar tax fraud and bribery, including allegations of bribing a New York state tax auditor to evade over $8 million in sales taxes [6]. - The company has experienced significant scrutiny, including a destructive fire at one of its nightclub locations and raids at its offices [6]. Stock Performance - The stock has declined 74.52% since its all-time high in January 2023, with a year-to-date decline of 57.61% amid increasing legal concerns [6]. - Following the management change announcement, shares fell by 1.10%, closing at $24.36 [6].