In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides insight into the financial challenges faced by Penthouse Global Media.
Article Link: https://www.latimes.com/business/hollywood/la-fi-ct-penthouse-bankruptcy-20180112-story.html
Summary
Penthouse Global Media, the company behind the well-known adult magazine Penthouse, has filed for Chapter 11 bankruptcy protection. The company, which has been struggling financially due to the decline in print advertising and the shift of the adult entertainment industry to the online space, is facing liabilities between $10 million and $50 million. The bankruptcy filing is a continuation of financial difficulties for the brand, which has seen previous ownerships, including founder Bob Guccione and parent company FriendFinder Networks, also encounter financial distress and bankruptcy filings.
- Penthouse Global Media oversees the magazine, adult channels, and a licensing business.
- The company’s top creditors are law firms Greenberg Traurig and Bayard P.A.
- Adam Stein-Sapir commented on the company’s debt and potential restructuring efforts.
Q&A
What does Chapter 11 bankruptcy protection entail?
Chapter 11 bankruptcy protection allows a company to reorganize its debts and business affairs with the goal of becoming profitable again. It provides the company with a temporary pause on the enforcement of creditor claims, during which the company can negotiate with creditors and create a plan to pay off its debts. For more information on bankruptcy, visit Pioneer Funding LLC.
How does the shift to online content affect traditional print media companies like Penthouse?
The shift to online content has significantly impacted traditional print media companies, leading to a decline in print advertising revenue. As consumers increasingly turn to the internet for adult entertainment, companies like Penthouse face challenges in maintaining profitability with their print publications, necessitating a pivot to digital platforms or diversification of revenue streams.
What are some potential outcomes for a company that files for Chapter 11 bankruptcy?
A company that files for Chapter 11 bankruptcy might restructure its debt and continue operating, sell the company to new owners, or liquidate its assets to pay creditors. The specific outcome depends on the company’s ability to reorganize successfully and the decisions made by the bankruptcy court. For insights into selling bankruptcy claims, one can refer to Pioneer Funding LLC’s guide on selling bankruptcy claims.
