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FriendFinder Networks, Inc. Files for Chapter 11 Bankruptcy

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ffn-logoXBIZ reports that FriendFinder Networks, Inc., parent company of Penthouse magazine and, has filed for Chapter 11 bankruptcy protection in Wilmington, Delaware after reporting losses for seven consecutive years up to 2012.

FFN listed assets of less than $10 million and liabilities of as much as $500 million to $1 billion.

FFN CEO Anthony Previte cited mounding compounded debt over a period of time – which caused banks, creditors and credit card processors to perceive the company as a poor risk – as the chief reason for FFN’s restructure despite it having paid back nearly $150 million.

Previte pointed to the Penthouse magazine print publication as the biggest drain on FFN’s resources due to shrinking retail outlets and a shortage of printers. Regardless of the magazine’s long-term fate, however, Previte said Penthouse will always be available in a digital format and that video production will continue.

Previte further stated that FFN is not actively seeking new financing – noting that the company has $40 million in available capital banked – and there are no layoffs, executive changes or shutdowns expected during the restructuring.

The FriendFinder official court papers are available for viewing here.

Written by Adam Wilcox

September 17, 2013 at 8:14 pm

Posted in News

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