Playboy Talks End For Now
By Marcus Gilmer in News on Dec 18, 2009 3:00PM
Chicago-based Playboy Enterprises has ended negotiations with Iconix Brand Management, owner of London Fog, Starter and Joe Boxer. The deal, estimated to be worth about $300 million, stalled over the role founder Hugh Hefner would play. Hef, who owns 70 percent of the company's stock, is the magazine's editor-in-chief and chief creative officer of the company, but he is no longer involved in day-to-day operations. The LA Times reports:
Iconix's main interest in Playboy was its brand name, which it hoped to license for consumer products and location-based entertainment. According to two people close to the deal, Iconix was looking to sell Playboy's video production and pay-TV assets to stay out of the adult video content business.
Chief Executive Scott Flanders will continue to try to turn a profit for the company - which is estimated to lose $8 million this year- by 2011.