Penthouse writer FriendFinder files for bankruptcy. Maybe gender doesn’t sell that really after all

  • by

Penthouse writer FriendFinder files for bankruptcy. Maybe gender doesn’t sell that really after all

(Reuters) – possibly sex does not offer that well all things considered.

FriendFinder communities Inc FFNT.PK , manager of Penthouse journal and numerous adult-entertainment internet sites, registered for part 11 bankruptcy proceeding on Tuesday.

The company, which wanted to combine social networking and intercourse, mentioned it got struck a package with noteholders that’ll minimize their personal debt by $300 million if authorized by the U.S. personal bankruptcy courtroom in Delaware.

Within the arrange, one band of noteholders will require control for the intercourse activity business, which traces its roots towards the belated Penthouse author Bob Guccione. As well as common in personal bankruptcy, shareholders will likely be left with nothing.

Power over the firm would go to Andrew Conru and Lars Mapstead, two noteholders who ended up selling different social networking websites to FriendFinder in 2007.

Through a system of thousands of web sites, FriendFinder provides alive videos, chat rooms, and image and video sharing. In addition, it desired to engage the abilities of social network with internet sites such as adultfriendfinder, which marketed relaxed sex, and bigchurch, which aimed for religious contacts.

The company and its own affiliates comprise a worldwide circle greater than 8,000 web sites with 220 million members and 750,000 members, per documents.

But while Facebook FB.O , LinkedIn LNKD.N also social websites has exploded, FriendFinder’s limped. The money in finished Summer 30 totaled $293.70 million, down ten percent through the past year.

Hardest hit was actually the firm’s networks, in which earnings dropped 17.6 percent, based on courtroom filings. A few of that fall is counterbalance by a 7.8 percent rise in real time interactive videos sales.

Ezra Shashoua, the organization’s primary financial officer, charged the low money on a drop in membership and increasing marketing and advertising charges for associates, per court papers. Shashoua additionally said creditors have refused to procedure deals your company’s Internet enterprises . Absolutely no reason was presented with.

FriendFinder have not turned-in a net profits since about 2008, relating to Thomson Reuters information.

The company was actually established by Marc Bell and Daniel Staton in 2003 if they acquired from personal bankruptcy the publisher of Penthouse, Guccione’s racier competitor to Playboy. In 2007 the business ordered Various Inc and its dating internet sites from Conru and Mapstead for $400 million.

A-year after it submitted with regulators to boost $460 million in a short public supplying, nevertheless when it ultimately done the IPO last year, FriendFinder raised simply $46 million.

This year the organization wanted to purchase rival Playboy corporations Inc for $210 million. The deal fell by.

FriendFinder said in U.S. bankruptcy proceeding legal papers they plans to question profit and latest obligations to holders of $234 million of first-lien notes. In addition, it plans to cancel about $330 million in second-lien records and question latest inventory to the people debtholders, that will acquire the organization if it exits bankruptcy proceeding if arrange gets creditor and legal endorsement.

FriendFinder mentioned the master plan is supported by 80 percentage of their noteholders but has not but already been place to a creditor vote.

Bell and Staton, who reconciled her executive opportunities using business last year, each approved a $500,000 profit payment to finish their particular consulting contracts with all the providers, in accordance with documents.

Earlier in the day this season, LodgeNet fun, which supplied xxx movies and video games to motels and their visitors, submitted for bankruptcy proceeding, partially due to net competitors.

The FriendFinder circumstances was PMGI Holdings Inc, circumstances No. 13-12404, U.S. Bankruptcy courtroom, District of Delaware.

Reporting by Sakthi Prasad in Bangalore; Editing by level Potter, Louise Heavens and John Wallace

Leave a Reply

Your email address will not be published.