Tough times for magazine legends. Playboy might cease its print edition in the US and last week Penthouse Global Media announced that it filed for bankruptcy protection under Chapter 11. The company is confident that it will be successful in restructuring the business.
Kelly Holland, Penthouse’s CEO, and co-owner said that the company is planning to use the bankruptcy protection to restructure and strengthen business operations and the general financing of the company. She acquired Penthouse Global Media from FriendFinder Networks in 2016 as part of a management buyout.
The details about the extent of Penthouse’s financial problems remain foggy. The company gave an estimation of its debts between $10 and $50 million. The biggest creditors of Penthouse seem to be the law firms Greenberg Traurig and Bayard P.A..
Holland said: »Our global broadcast operations remain strong and we are in development on several licensing initiatives.« She added that the company was able to get commitments for debtor-in-possession financing which will allow Penthouse to keep the business afloat without any interferences for customers. Therefore Holland is confident that all of the publications and operations under the Penthouse brand will go on.
She said: »The company is operating business as usual and remains fully committed to providing the same content and services fans have come to expect. During the previous two years we have revitalized the publishing division by re-styling both Penthouse Magazine and Penthouse Letters. Additionally, we have re-introduced Omni Magazine, the classic magazine of science and science fiction, with an eye to launching broadcast media projects based on the brand.«
So Holland remains fired up: »Penthouse is fully focused on the future and does not expect to experience any material disruptions.«