Citizen Fall

Playboy Looking For Buyers

Posted in Financial News by ryedog on February 19, 2009

It’s no secret the business of print media continues to suffer heavy losses as readers flock to computer screens and mobile devices for content—and that includes looking at naked women.

Citing a net loss of more than $150 million in 2008, as well as the departure of CEO Christie Hefner, daughter of founder Hugh Hefner, interim chairman and CEO Jerome Kern said that Playboy is open to a change in strategic direction.

And that includes the sale of the enterprise.

“Our financial performance is not reflective of [Playboy’s] potential,” Kern said in a statement. “Over the past several months, the company has accelerated the pace of expense reduction designed to bring our cost structure in line with current market realities and the positioning of our businesses going forward.”

The magazine’s revenue in 2008 was $292.1 million, down 14 percent from the 2007 figure of $339.8 million, with a significant portion of the losses being incurred during last year’s fourth quarter. As a result, Playboy expects a 27 percent slide in advertising dollars during the first quarter of 2009.

Kern took over for Hefner after she announced late last year she was going to step down by the end of January.

In a synergistic move to streamline production costs, the company decided last month to combine its print and editorial operations, as well as shut down its New York offices.

Advertisements

One Response

Subscribe to comments with RSS.

  1. […] short time ago, we brought you the story of Hugh Hefner’s recessional troubles, wherein a few cost-custing techniques were being utilized […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: