WGCZ Holdings, the owner of more than 43 sites, has paid 11.2-million dollars for the publishing, broadcasting, digital and licensing rights of embattled Penthouse Magazine.
Penthouse Global Media filed for Chapter 11 bankruptcy in January this year, in an attempt to address the debt crisis that had plagued the publication for more than a decade.
However, after various interventions since as far back as 2003, it would appear the future of the men’s magazine is secure again.
The company was actually bought out in an auction on June 4, but WGCZ will officially take over the new operations on Monday. This bid was seen as a massive success, given the circumstances that Penthouse found itself in this year.
Speaking to the New York Post, Hamid Rafatjoo, an attorney representing the unsecured creditors committee, said: “To go from 3-million dollars to 11.2-million dollars, I think is a great result. We’re looking forward to monetising the other assets and wrapping this thing up.”
Among the other bidders were Pornhub, Dream Media and Larry Flynt’s Hustler. Founded in 1965, Penthouse first encountered some financial problems at the turn of the century – party because of an increase in competition and entry into the digital age.
In 2003, Penthouse parent company General Media filed for Chapter 11 bankruptcy protection. In November 2004, Penthouse International’s Chief Executive and Chairman Bob Guccione resigned. Penthouse subsequently filed for bankruptcy in September 2013.
In 2015, the company started operating as a subsidiary of FriendFinder Networks Inc. A year later, Penthouse Global Media acquired the magazine brand from FriendFinder Networks.