Playboy (NYSE: PLA) Enterprises’ plan to save money by closing its New York office is going to end up costing more than it anticipated. In an 8-K filing, Playboy said that in light of the deteriorating New York real estate market, it has revised its Q2 restructuring charges to $9 million from $4 million, previously. The added costs are based on the discounted value of its sublease agreements.
On top of that, Playboy expects further restructuring charges for the remainder of the 10-year lease averaging $1 million annually. The charges represent one more liability for the company, which has been shopping itself around for about $300 million without much success for the past several months.