VCG Holdings CEO Arrested in Prostitution Sting

DENVER—Troy Lowrie, the chief executive of VCG Holdings, was arrested July 13 during a prostitution sting being conducted on West Colfax Avenue, according to the Denver Post. VCG Holdings is a Denver-based company that owns and operates 20 gentlemen’s clubs in 10 states, including the Diamond Cabaret and the Penthouse Club in the Denver area.  “At 2:15 p.m. July 13," the paper reported. "Lowrie allegedly approached a female undercover Denver police officer who was working in a prostitution sting and engaged the officer multiple times, according to the complaint against him. Driving a black Hummer, Lowrie allegedly circled the block, whistled, waved and honked to get the officer's attention. Lowrie allegedly asked the officer at least twice if she was a cop.” However, according to news reports, the official complaint also indicated that Lowrie "did not agree to a deal, but stated that he had money,” and that he told the officer he owned PT's and asked her to "work for him." Following news of his arrest, Lowrie, who in February was named as one of Business Week top “CEOs of Sex,” was also fired from his side job as a tennis coach for the Golden High School. The school is located in Golden, where Lowrie lives. In February 2010, VCG Holdings signed a letter of intent to merge with Rick’s Cabaret, another leading strip club company and a competitor of VCG’s in many states. However, the letter of intent was allowed to expire in April after the two companies failed to finalize the deal. "Last November," the Denver Business Journal reported in April, "Lowrie said he wanted to buy up all outstanding VCG stock for $2.10 a share, through an investment entity called Lowrie Management LLP and 'certain other unidentified investors,' and take the company private. But in December, a special VCG board committee evaluating Lowrie’s offer deemed it 'currently inadequate.'" According to the February Business Week article, “VCG's annual report states that the clubs range from type ‘A,’ which are higher-class, with high-label cigars and VIP areas, to type ‘C,’ which don't serve alcohol except in Texas, where clubs have a ‘bring your own bottle’ format." Bloomberg data indicated that in 2009, VCG Holdings had annual revenue of $51.9 million and that Lowrie's salary was $700,000. Lowrie was released from custody after being booked for furthering the act of prostitution.