A takeover in the Minneapolis topless dancer business is on hold indefinitely because of the state government shutdown.

The purchase of Schiek's Palace Royale is stalled -- although the business remains open -- because the required state liquor permits cannot be obtained, the head of Houston-based Rick's Cabaret International said Thursday.

Rick's agreed to pay $2.875 million for the business.

"We have received all the necessary approvals from the Minneapolis city authorities, but we haven't been able to obtain necessary state liquor permits because of the shutdown, and thus we can't finalize our acquisition," said Eric Langan, president and CEO of Houston-based Rick's, which operates a club a few blocks from Schiek's and others around the country.

"We just hope the state can resolve the current impasse so that we can finish this acquisition and get to work."

Rick's spokesman Allan Priaulx said that his company has no interest in going ahead with the purchase if it would not be able to offer liquor. "One of the contingencies of the deal" is that alcohol be served at Schiek's, he said.

Priaulx added that once the agreement does go through, Rick's intends to keep both clubs open.

As part of the initial deal, a subsidiary of Rick's agreed to pay $3.25 million for the real estate where Schiek's is located.

Paul Walsh • 612-673-4482