Playboy Enterprises is up for sale

February 19, 2009

(ChattahBox) — Playboy Enterprises Inc, publisher of probably the world’s best known men’s magazine, continues to lose money and is ready for a white knight to sweep it off it’s feet.

The company, which posted a wider fourth-quarter loss then expected and net loss in each quarter of 2008, said it would be open to discussions about an outright sale of the company, or changes in the strategic direction of the flagship Playboy Magazine.

Net loss for Playboy, which in recent months has seen a management shake-up including the resignation in December of longtime Chief Executive Christie Hefner, was $145.7 million, or $4.37 per share. This compares with a loss of $1.1 million, or 3 cents a share, in the year-ago period.

Last month, Playboy said it would cut jobs, consolidate online and print operations and take a writedown as the company struggles with a declining audience in a poor economy. The company cut 14 percent of its workforce in 2008.

“The results of our (cost-cutting) efforts to date should be meaningful, but in the face of current economic conditions, it is clear that our streamlining initiatives need to continue,” interim Chairman and Chief Executive Officer Jerome Kern said in a statement.

On a conference call with analysts, Kern said the company is “actively engaged” in a CEO search. Hugh Hefner, the company’s 82-year-old founder and father of Christie Hefner, still oversees Playboy magazine as editor-in-chief, from the lengthy articles to the jokes page, cartoons and the airbrushing of the nude layouts.


Comments

One Response to “Playboy Enterprises is up for sale”

  1. Wicasta Lovelace on February 20th, 2009 9:28 am

    Playboy’s problems can be directly linked to its flagship magazine, which has in recent years changed its format somewhat in an attempt to be more like the popular rags Maxim and Stuff. I’ve been a Playboy subscriber for over 20 years, and I just let my subscription lapse because I’m tired of reading interviews from sports stars and B-grade celebrities, and fiction from college level authors whom I’ve never heard of. As the pre-eminent men’s magazine, Playboy was a pleasure to read every month, but as an imitator of Maxim and Stuff, it’s a waste of my time and money. Playboy should go back to being Playboy and publish a men’s magazine, and let Maxim and Stuff continue to publish material for hormonal boys. On that latter stage, there’s no way Playboy can compete.

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