PLBY Group (Playboy)

Sales of Playboy magazine peaked in 1972 at over 7 million copies. By 2015, the circulation had fallen to 800,000. The company completed its shift to consumer products in 2020 with the shuttering of the magazine division, and is now known to generate more than $3 billion in consumer spending annually across 180 countries.Playboy ran forty Playboy Club properties from 1960 to 1986 and operated casinos in England from the mid-1960s to 1981, when they lost their operating license. Playboy also operated a casino in Nassau, Bahamas, from 1978 to 1982. From 1981 to 1984, the company was a partner in the Playboy Hotel and Casino in Atlantic City, New Jersey. Playboy Enterprises was denied a permanent New Jersey gaming license and was forced to sell out to its partner, which changed the name of the hotel/casino to the Atlantis Hotel and Casino. The company returned to the nightlife business with the Playboy Club at the Palms Casino Resort in Las Vegas, which opened in 2006 and closed in 2012. Other Playboy Clubs opened in Cancun, Macau, and London in 2010 and 2011. Meanwhile, the company said it would open at least three Playboy stores in each of the next three years.The Age reported in October 2008 that, for the first-time ever, Hugh Hefner was selling tickets to his celebrity-filled parties to offset his cash-flow problems due to setbacks Playboy Enterprises had suffered, including decreasing Playboy circulation, decreasing stock value, and ventures that have yet to turn a profit. Christie Hefner released a memo to employees about her efforts to streamline the company's operations, including eliminating its DVD division and laying off staff.In March 2011, founder Hugh Hefner succeeded in a bid to take Playboy Enterprises private after 40 years as a publicly traded company. He partnered with private equity firm Rizvi Traverse.Playboy Enterprises closed its former headquarters in the top office floors of 680 N. Lake Shore Drive in Chicago, Illinois, in April 2012. In January 2013, the company said it employed 165.In 2018, less than a year after Hugh Hefner's death, his estate sold its remaining Playboy shares of 33%, worth $35 million, to Icon Acquisition Holdings LP. The money was split between Hefner's widow and his four children.On 18 March 2020, CEO Ben Kohn announced that the Spring issue of the magazine would be the last to be printed, and the publication would be online-only going forward.In October 2020, Playboy Enterprises announced a reverse merger with Mountain Crest Acquisition Corp, a special purpose acquisition company . On 11 February 2021, PLBY Group, Inc. completed its merger and began trading on the Nasdaq stock market under the PLBY ticker. PLBY Group, Inc. and its subsidiaries, including Playboy Enterprises, is headed by Ben Kohn, chief executive officer, president and director.

Segments

The company has three reportable segments: Licensing, which includes licensing of Playboy brands to third parties; Direct-to-Consumer, including sales of third-party products through its owned-and-operated e-commerce platforms; and Digital Subscriptions and Content, including the sale of subscriptions to Playboy programming and trademark licensing for online gaming products.

As of the 2020 re-organization the business had four main market categories:

Sexual Wellness, comprising own-branded lingerie and sexual amenities including CBD products. This segment contributed over 40% to revenue in 2020.

Style & Apparel, comprising licensed fashion sales globally, especially in China, where it is the leading men's' fashion brand with over 3500 stores. This segment contributed around 52% of revenue in 2020.

Gaming and Lifestyle, comprising its chain of licensed Playboy Clubs and digital gaming ventures in partnership with Scientific Games and Microgaming. This segment contributed 3% to 2020 revenue.

Beauty & Grooming, comprising skincare, beauty and grooming products. This segment contributed around 2% to revenue in 2020.The company's Playboy Foundation provides grants to non-profit groups involved in fighting censorship and researching human sexuality.