HOLLYWOOD, CA (CelebrityAccess MediaWire) — House of Blues Entertainment has decided to not sell its highly regarded concert subsidiary, House of Blues Concerts, Inc. In December, House of Blues reported that it had retained the services of UBS, a global financial services firm, to assist in evaluating overtures made by potential acquirers.
“We are constantly evaluating options to grow the House of Blues brand as quickly as possible. However, we have concluded that retaining our concert business will generate more growth than selling it. I believe that the supply and demand dynamics of the concert industry bode well for our business going forward. The benefits of operating amphitheatres and club venues in a market outweigh the benefit of an accelerated club-only development strategy,” said Greg Trojan, chief executive officer of House of Blues Entertainment, Inc. He adds, “I firmly believe in the growth potential and long-term prospects of the concert industry, and the synergies with our expanding club division.”
In March 2004, HOB announced a $110 million recapitalization to expand the Company's strong brand throughout North America and international markets.
HOB began its current expansion phase with the opening of a club in Cleveland, Ohio late last year, the eighth House of Blues club in the United States. Additional clubs under construction include San Diego, California; opening in May, 2005; and Atlantic City; New Jersey, opening in July of this year. The company plans to announce additional locations shortly. –by CelebrityAccess Staff Writers