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Penthouse Publisher Can't Meet Interest Payments
TBO.com ^
| 3/29/02
Posted on 03/29/2002 11:58:17 AM PST by Tumbleweed_Connection
The auditor for General Media Inc., publisher of Penthouse and other magazines, has said there is substantial doubt about the company's ability to continue as a going concern.
In the company's annual report filed late Thursday with the Securities and Exchange Commission, Grant Thornton LLP, the auditor, said the company's liabilities exceeded its assets by $22.3 million at the end of last year and it is unlikely that it can earn enough to make all its interest payments due in 2002.
The privately held New York-based company said it had laid off 39 employees, 26 percent of its total work force, in February.
The company also said it doesn't believe it can make interest payments of about $7 million and amortization payments of $5.8 million in 2002.
The company is negotiating with the holders of the notes to reduce payments.
If the company doesn't make the payments, the trustee for the notes could assume control over the company and substantially all of its assets, including its registered trademarks.
In its annual report, General Media said it posted a net loss of $9.9 million for 2001, compared with a net gain of $3.8 million in 2000.
Revenue decreased by $10.6 million to $65.4 million for 2001, the filing said.
The company said it has experienced a steady decline in the number of newsstand copies of Penthouse magazine and its affiliate publications sold over the past several years.
General Media attributes the decline to the change in social climate toward men's magazines, together with the proliferation of retail video outlets and the increased market share of cable television and the Internet.
TOPICS: Culture/Society
KEYWORDS: cantmakeinterest; penthouse
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To: Tumbleweed_Connection
First Enron, then Global Crossing, now Penthouse... Oh! The Humanity!
To: Tumbleweed_Connection
The company said it has experienced a steady decline in the number of newsstand copies of Penthouse magazine and its affiliate publications sold over the past several years. Well, after awhile all their pictures and fantasy stories look and read the same....not that I would have any first hand knowledge, I'm just saying, ya' know?
3
posted on
03/29/2002 12:02:08 PM PST
by
TADSLOS
To: Tumbleweed_Connection
Considering how much free pornography is just a click away on the internet, it's a wonder that any of the old porno magazines are still around. People really must be reading the articles!
4
posted on
03/29/2002 12:03:03 PM PST
by
537 Votes
To: Tumbleweed_Connection
Looks like Penthouse will soon become a collectible.
5
posted on
03/29/2002 12:03:24 PM PST
by
hchutch
To: Chad Fairbanks
Maybe Playboy can do an issue on "The Women of Penthouse"?
To: Oldeconomybuyer
May have to change the name to "Poorhouse."
To: Tumbleweed_Connection
Well, unlike Enron & Global crossing, we know what the Penthouse auditors were looking at!
8
posted on
03/29/2002 12:05:55 PM PST
by
pikachu
To: 537 Votes
Didn't Playboy shutter the last of their Bunny Clubs (somewhere in Iowa as I recall) precisely because of the competition? There was raunchier stuff available nearly everywhere.
To: pikachu
Wrong. It's Bush in all cases.
To: Tumbleweed_Connection
Good! Close them down.
11
posted on
03/29/2002 12:09:46 PM PST
by
Texbob
To: Tumbleweed_Connection
Dear Penthouse Forum,
I never believed that your income statements were real, until something happened to me that I just had to share.
To: 537 Votes
The internet is recreating the whole concept of media, and communication. The old style porno industry is on its way out. It is passe.
To: Tumbleweed_Connection
"Aaawwww...to bad, so sad. Good bye and good riddance, smut peddlers!"
This is no loss for society.
14
posted on
03/29/2002 12:14:11 PM PST
by
Pablo64
To: Tumbleweed_Connection
No victory yet. I don't think Larry Flynt is going down. This is just his publisher. The only problem this causes Larry is that he has to find a new publisher.
15
posted on
03/29/2002 12:17:45 PM PST
by
Rockitz
To: Pablo64
This is no loss for society. Any time that good-looking women can't come together for some pictorial loving is in fact a dark day for society.
Comment #17 Removed by Moderator
To: Tumbleweed_Connection
Auditors are required to observe the inventory. Are the models considered inventory ?
To: superdestroyer
Their skateboard magazine has been hammered for disrepecting 9/11 widows.
To: Rockitz
This isn't Flynt. It's Bob Guiccioni.
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