Anyone worried that American Media Inc.’s bankruptcy would mess with their Playboy subscription should rest easy. Playboy is sending out assurances that their operations will, as AMI CEO David Pecker put it earlier this week, “function seamlessly, staff will be unaffected by the reorganization and customers should not notice any difference.”
Folio has the story:
Last November, Playboy Enterprises agreed to farm out the magazine’s advertising sales, circulation, marketing, production and all other business operations to AMI. Under terms of the contract, AMI said at the time that it would be paid “potential fees” in the range of $5 million for advertising, circulation, production and related services. This, the company said, would result in profitability of approximately $2 million.
According to a spokesperson for Playboy, AMI’s pending bankruptcy filing does not jeopardize its agreement with Playboy. “We are pleased with our existing relationship, and we don’t think that these financial proceedings will have any impact on our agreement,” the spokesperson says.
Previously on FBLA: Bankruptcy on the Horizon for National Enquirer Publisher