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By Tom HalsSakthi Prasad. PKpublisher of Penthouse magazine and numerous adult-entertainment websites, filed for Chapter 11 bankruptcy on Tuesday.
Bankruptcy Court in Delaware. Under the plan, one group of noteholders will take ownership of the sex entertainment business, which traces its roots to the late Penthouse publisher Bob Guccione. As is typical in bankruptcy, shareholders will likely be left with nothing.
Control of the company would go to Andrew Conru and Lars Mapstead, two noteholders who sold various social networking websites to FriendFinder in Through a network of thousands of websites, FriendFinder provides live video, chat rooms, and photo and video sharing. It also sought to tap the powers of social networking with websites such as adultfriendfinder.
The company and its affiliates comprise a global network of more than 8, websites with million members andsubscribers, according to court documents.
But while Facebook FB. N and other social sites have boomed, FriendFinder's limped. Some of that drop was offset by a 7. No reason was given.
FriendFinder has not turned in a net profit since at leastaccording to Thomson Reuters data. The deal fell through. FriendFinder said in U. FriendFinder said the plan was supported by 80 percent of its noteholders but has not yet been put to a creditor vote.
Earlier this year, LodgeNet Interactive, which provided adult films and video games to hotels and their guests, filed for bankruptcy, partly due to Internet competition. Bankruptcy Court, District of Delaware. Business News Updated.