The Allmand Law Firm, PLLC Difference

Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

Owner of Penthouse Magazine Files Bankruptcy Protection

Posted By Allmand Law Firm, PLLC || 20-Sep-2013

Owner of Penthouse Magazine Files Bankruptcy

FriendFinder Networks, owner of adult entertainment website and the popular magazine publication Penthouse, has filed for Chapter 11 bankruptcy. The company has been struggling to pull in new revenue in recent years, while having problems paying back outstanding loans and other debts. In August, the company was delisted from NASDAQ when their stock trade fell above one dollar.

FriendFinder is also the owner of multiple online dating sites and adult websites. In recent years, competition from their rivals has increased since many internet sites offer adult content for free. In the last fiscal year, the company reportedly lost close to $50 million. According to documents filed, the company has debt liabilities at just over $500 million, while listing assets at under $10 million.

The company claims the filing is the most cost-effective strategy in helping the company regain control of their finances. The company hopes to eliminate roughly $300 million in liabilities through restructuring their finances with a redevelopment plan to be executed this month. The company hopes to get debt refinanced for the long-term, while working on growth and develop of other brands.

Penthouse Media Group created the network FriendFinder in 2007 after acquiring it from Various Inc. In 2011, the company went public after changing their name. Before the name change the company offered to buy their rival Playboy Enterprise Inc. for more than $200 million, but the deal fell through at a later time.


Blog Home