Breaking News: Christie Hefner Out As Playboy Chairman, Will Leave CEO And Board Posts As Well

It is about time if you ask me. Something needed to be done to try and bring this company back up. I own some stock of theirs and I don't think it is anything to write home about. Plus when I tried to purchase a back ordered magazine they wanted to charge me 10 to 15 bucks for shipping. Come on!

Staci D. Kramer

paidContent.org
Monday, December 8, 2008; 10:07 AM

Christie Hefner, CEO of Playboy Enterprises (NYSE: PLA) for the last two decades, is leaving the family business, stepping down as chairman today and as CEO Jan. 31, 2009. It looks like a complete break: she will leave the board when a new CEO is found. Effective immediately, board member Jerome Kern becomes interim non-executive chairman of the board. Release

David adds: The announcement was made a day before Hefner, whose father Hugh founded the company in 1953 and remains chief creative officer, was to address investors at the UBS Global Media and Communications conference. In a statement, the elder Hefner said: "I asked Christie to step up as president when the company faced serious financial difficulties more than two decades ago. She has worked tirelessly to expand the company's franchise, and, as a result of her efforts, the company today has more consumers and fans than at any time in our history. Of course, as her father, my first priority is Christie's happiness. While I will miss her leadership here, I believe that she will go on to achieve even greater personal success."

Even before the economy worsened considerably this fall, Playboy has been struggling financially for some time.It posted another net loss in Q3, with losses totaling $1.1 million ($0.04 per share) compared last year's $2.6 million ($0.08 per share). During the past two earnings calls, Hefner heavily omoted Playboy's website relaunch as a key part in its turnaround. The website would serve as the "glue" holding media, events, retail together. Aside from that, the Chicago-based magazine and entertainment company has cut 140 jobs this past year.

Rafat adds: From SEC filings, the details of her payout compensation if she were to leave the company:-- Termination for Cause: $2,232,159-- Termination without cause by Playboy: $ 3,180,236-- Voluntary Termination: $2,287,928-- Termination following change of control: $7,564,691The amounts also include the following severance payments: 68 weeks base salary for Ms. Hefner (pursuant to our termination policy), the SEC filing says.