8-K Watch: Playboy Hit With $20 Million In Writedowns

Playboy Eyes

Ahead of next week’s earnings report, Playboy Enterprises (NYSE: PLA) said that it had $20 million in impairment charges last quarter, according to an 8-K filing. The company attributed most of the write-downs to programming costs. About $3 million of the non-cash charges stem from a dispute over payments DirecTV (NYSE: DTV) has withheld.

Last March, the satellite TV company filed a suit in California Superior Court alleging that Playboy and its Spice Hot Entertainment unit were in breach of contract, according to an earlier Bloomberg report. Specifically, DirecTV claimed that Playboy violated an agreement to offer the satellite company the same terms as any other cable or satellite operator.

Playboy said it is “vigorously” contesting the suit.

The news about impairment charges comes a few months after several suitors began vying to acquire Playboy. Following a year-and-a-half of waiting for a buyer, in July, founder Hugh Hefner presented a bid to take the company private for $5.50 per share.

That promptedPenthouse parent FriendFinder Networks then made its own $210 million offer for the company. Playboy hasn’t given that offer much serious consideration. In any case, there hasn’t been much movement Hefner’s bid either, at least not publicly.

Comments have been disabled for this post