Owner of magazine ‘Penthouse’ filed for Chapter 11 bankruptcy
Posted on Wednesday, September 25th, 2013 at 6:14 pm
The owner of Penthouse magazine and several online dating and adult websites, FriendFinder Networks, filed for Chapter 11 bankruptcy on Tuesday, September 17.
According to the Sunnyvalle, California-based company, they were struggling for quite a while, dealing with low revenue due to lesser demand of paid content because of prevalent free adult materials that are available online. Their financial struggles also stemmed from the tougher competition their dating sites were facing.
FriendFinder Networks has a debt of $521.8 million and they are planning to tap a majority of the note holders to compensate for some of the debt. The magazine company, which also owns a group of adult websites, lost $49.4 million in the last fiscal year.
Facing outstanding debt and other financial woes as a business owner can be stressful and frightening. In this situation, filing bankruptcy may be your best option for getting out of debt. To learn more about your options as a Raleigh business owner, talk with a lawyer at the Bradford Law Offices, PLLC, by calling (919) 758-8879.