Playboy Enterprises Inc. (Chicago) has announced the resignation of chairman and ceo Christie Hefner. Jerome Kern, currently a member of the company’s board of directors, has been named interim non-executive chairman while Playboy looks for a replacement.
Hefner, daughter of founder Hugh Hefner, joined Playboy in 1975 and was named chairman and ceo in 1988. She will stay on as ceo until Jan. 31, 2009, and will remain on the board until a new chief executive joins the company. Her 82-year-old father is still the controlling shareholder.
Hefner said the leadership change was her decision, but it follows signs of trouble for the publishing, entertainment and retail branding company. In October, Playboy announced a $5.2 million third quarter loss and said it would cut 55 current employees and eliminate 25 vacant positions due to the troubled economy. The magazine is facing rising printing, paper and distribution costs, and ad pages through the September issue were down 15.5 percent. Hefner said she thought the business was on solid ground despite its current challenges. “If my strategy had been never to leave until there are no challenges and no opportunities, I would never have been able to leave,” she said.
Hefner said she would not look for another full-time corporate job but would seek nonprofit work and board positions among other interests. “I’ve always known that I wanted to move on at some point in my career,” she said. “I’ve given a great deal of my life to the company.”
“In the course of her tenure, Christie has overseen Playboy's transition from a domestic magazine publisher to a global lifestyle and multi- media company,” Kern said. “She directed the company's entry into TV, online and mobile and helped each of those businesses reach profitability. Under her leadership, the Licensing Group grew from insignificance to become the company's most profitable business. Christie's commitment to the company has been unparalleled, and we are pleased that she has agreed to stay on to help oversee the transition.”
Kern joined Playboy's board of directors in 2002. He is a partner in Enki Strategic Advisors (Denver) and president of Kern Consulting LLC (Alexandria, Va.).