Rumors of a
$300 million sale of Playboy Enterprises Inc. (NYSE:PLA) took a backseat to the election of Scott Flanders as
CEO of the ailing adult entertainment company. The appointment marks the end of an almost six-month search to replace former CEO Christie Hefner.
Competition, dwindling ad sales and penny-pinching would-be customers caused the famed Chicago-based magazine publisher to consider an
outright sale in February. But the new CEO (pictured) had this to say in a Q&A with the Chicago Tribune
when asked about a sale:
"I'm coming into this position to build value for the long term. The ultimate measure of that in my mind is building value for shareholders. You have a duty to shareholders to entertain any offers that might be delivered, but I will be operating the business every minute to build value for the long term."Flanders joins Playboy from media giant Freedom Communications Inc., where he spent three years as president and CEO. Previously he spent nearly six years at Columbia House Co., where, as chairman and CEO, "he was responsible for developing and implementing the strategy that returned that company to profitability."
Flanders facilitated a leveraged buyout of Columbia House by Blackstone Group LP in June 2002. In May 2005, Blackstone sold the company to Bertelsmann AG in a transaction that closed in July 2005.
Playboy also made David Chemerow, senior vice president and chief financial officer of Olympus Media LLC, nonexecutive chairman of the board.
Flanders said in a statement, "The evolution of the media industry and the global recession's effect on consumer spending intensify the need for a creative and effective business model. I look forward to working with [founder] Hugh Hefner, David and the employee team to take Playboy to the next level."
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