General Media Inc., the subsidiary of Penthouse International Inc. that publishes Penthouse, announced today that they had filed for Chapter 11 bankruptcy protection so it can restructure its operations and debts. Penthouse International was not included in the filing.
The August issue of Penthouse will be on news stands tomorrow. It is not yet known if a September issue of the adult magazine that Bob Guccione founded in 1965 is planned.
"I believe the additional funding and prompt filing of a plan of reorganization will present the best means to preserve and enhance the value inherent in the brand for its many stakeholders," Guccione said in a statement released to the media.
Calls to Penthouse International's corporate offices went unanswered.
Chapter 11 provides legal protection to the assets of a corporation that has debts that are not likely to be paid on time. This allows the company to continue operations while seeking to reogranize its operations and debt obligations. A Chief Reorganization Officer was appointed by General Media Inc., today to oversee the reorganization of the company.
