Former Agenda LLC co-owner Seth Haber is tasked with turning around the bankrupt web retailer.
Playboy reported a drop in both web and total sales.
Playboy Enterprises Inc., which is weighing an offer to sell all outstanding shares of common and preferred stock to founder Hugh Hefner, posted lower e-commerce revenue in the second quarter.
- A decline in e-commerce revenue of 7.9% to $8.2 million from $8.9 million in the second quarter of 2009.
- Total sales declined year over year 10% to $56 million from $62.2 million.
- Net loss was $5.4 million compared with a net loss of $8.7 million in the second quarter of 2009.
“Our goal of reducing overhead expense is a priority, and previous cost reduction initiatives helped offset the revenue decline in the second quarter,” says CEO Scott Flanders. “These efforts continue and the staff reductions we made in the second quarter should yield annual savings of approximately $3 million.”
Internet Retailer calculates the web accounted for 14.6% of total sales in the quarter compared with 14.3% in the prior year.
For the period of January through June, Playboy reported:
- E-commerce revenue decreased 9.3% to $16.5 million from $18.2 million.
- Total sales declined year over year 12.3% to $108.1 million from $123.3 million.
- Net loss was $6.4 million compared with a net loss of $22.4 million in the period of January through June in 2009.
Internet Retailer calculates the web accounted for 14.8% of total sales the same as in the prior year. On Aug. 3, Playboy’s board of directors formed a special committee consisting of Sol Rosenthal, an attorney in the Los Angeles law firm of Arnold & Porter, and Shing Tao, chief investment officer of investment banker Pacific Star Partners, to study Hefner’s proposal to acquire the company and take it private. No timetable has been set.
On July 12, Hefner, who already owns about 69.5% and 27.7%, respectively, of Playboy’s common and preferred stock, offered to purchase all of the company’s outstanding shares for $5.50 per share in cash. The value of the deal would be about $185 million, the company says.