Penthouse magazine owner files for bankruptcy

SUNNYVALE, Calif. (AP) — FriendFinder Networks Inc., the owner of Penthouse magazine and a bevy of online dating and adult websites, filed for Chapter 11 bankruptcy protection Tuesday.

The Sunnyvale, Calif., company said that bankruptcy protection is the “most efficient and cost-effective” way for it to improve its balance sheet.

FriendFinder, like many of its peers in the adult entertainment industry, has been struggling for some time with lower revenue, as free adult content online has lessened demand for paid content. It also faces tough competition for its online dating sites. The company reported a loss of $49.4 million in its last fiscal year.

The company owns well-known Penthouse magazine and related products, but it also runs a bevy of online dating sites such as, and

Additionally, it runs a number adult websites such as, and About 29 percent of its revenue last year was from its “live interactive” segment.

FriendFinder was created after Penthouse Media Group acquired Various Inc. in 2007. The company then changed its name and it went public in 2011.

The company, which had $521.8 million in outstanding debt at the end of its March quarter, said that it plans to refinance some of its debt through an agreement with the majority of its note holders. This would ultimately return control of the company to founders of Various Inc., Andrew Conru and Lars Mapstead.

Under the agreement, note holders would exchange existing notes for a mix of new notes, cash and new common stock.

FriendFinder CEO Anthony Previte said the agreement with the majority of its note holders will allow the company to refinance long-term debt, reinvest in the business and position some of its strongest brands for additional growth.

The plan is expected to reduce the Company’s annual interest expense by over $50 million and eliminate approximately $300 million of secured debt.

The company has already filed initial bankruptcy paperwork and plans to file a plan of reorganization this month.

FriendFinder’s stock was delisted from the Nasdaq in August for failing to trade above $1 and moved to the over-the-counter marketplace. Its shares plunged 79 percent to 7 cents at midday in high-volume trading.

WKBN 27 First News provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. No links will be permitted. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

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

You are commenting using your 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