Reversal On Honey Birdette

Playboy reversed direction and “decided to retain its Honey Birdette business based on significant improvement in the” company’s “balance sheet following the successful closing of the previously disclosed long-term license agreement with Byborg Enterprises S.A.,” as well as a substantial stock sale to the same organization.

When it released its Q3 2024 financial results in mid November, reporting a loss of $33.76 million on revenue of just $12.86  million, Playboy made the surprise announcement that is was now considering “the company’s Honey Birdette business as a discontinued operation.” CEO Ben Kohn justified this accounting move saying, during a very brief conference call, that “as we previously stated, we are in process of looking for partners for that business.” In the second quarter Playboy had reported a dramatic decline at Honey Birdette, noting its revenue had “decreased by $3.8 million, or 21% year-over-year.”  

Backpedaling on Honey Birdette two months later,  Playboy pointed to “a meaningful improvement in operational metrics at Honey Birdette and future growth prospects that are expected to significantly increase the value of the Honey Birdette business.” The parent company outlined the improvements stating it expected to “generate total full-year revenue of approximately $120 million,” and “be cash flow positive in 2025,” as well as reduce its debt during the year.

Playboy CEO Ben Kohn, also pointed to “a leaner cost structure reimagined around an asset-light model resulting in positive cash flow and a much stronger balance sheet reflecting the equity investments and debt reductions.” He concluded that “with this strength, the company’s board of directors no longer believes it is the optimal time to explore strategic alternatives for Honey Birdette, and instead has decided to focus on continuing to grow the business which we believe could meaningfully increase its value.”

Above, images of the new Charlotta navy bustier lingerie set, priced from  $255, on the us.honeybirdette.com website.