Management ChangeMay 28, 2026, 04:10 PM

RCI Hospitality CEO, CFO Step Down Amid Indictment, SEC Probe

AI Summary

RCI Hospitality Holdings, Inc. reported a net loss of $(5.06) million for the six months ended March 31, 2026, and a net loss of $(0.33) million for the three months, a significant decline from the prior year. This comes amidst a major management shake-up, with CEO Eric Langan and CFO Bradley Chhay stepping down, and an interim leadership team appointed. These changes follow a New York Attorney General indictment and an SEC investigation related to alleged tax fraud and bribery. The company also saw increased impairment charges and a substantial non-operating loss from stock repurchases.

Key Highlights

CEO Eric Langan and CFO Bradley Chhay stepped down, with Travis Reese and Albert Molina appointed Interim CEO and CFO.
Eric Langan also stepped down as Chairman of the Board, replaced by Travis Reese.
The Company, three subsidiaries, and five employees were indicted by the NY AG for alleged tax fraud and bribery.
The U.S. SEC issued a subpoena seeking documents related to the NY AG investigation.
Net loss attributable to common stockholders was $(5.06) million for the six months ended March 31, 2026.
Total revenues increased to $139.55 million for the six months ended March 31, 2026, from $137.36 million.
Impairment of assets surged to $8.43 million for the six months, up from $1.78 million in the prior year.
The Company repurchased 821,000 shares for $30.0 million, partially financed by a $22.0 million promissory note.

View SEC Filing

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Restaurants

RCI HOSPITALITY HOLDINGS, INC.

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