July 18, 2003 04:29pm
Is Penthouse Closing It's Doors?
by: Seth Mnookin
Penthouse employees on Friday received only 25 percent of their usual salaries, according to several employees at the company. And Kennedy Funding, a commercial real-estate lender, is planning on foreclosing on the mansion on Tuesday, according to Joseph Wolfer, Kennedy's founder and principal. Meanwhile, employees and the magazine advertising community are questioning whether the once high-flying skin magazine will ever publish again.
Lainie Speiser, a spokeswoman for Penthouse, insisted the magazine had no cash-flow problems. When asked whether employees would receive their full paychecks, she declined to comment. She also refused to comment on whether the magazine, or any of its print spinoffs like Penthouse Forum and Penthouse Black Label, would publish again.
Last Tuesday, the magazine's employees were called to a meeting and told Penthouse had missed its printing schedule-no new issues of the monthly magazine appeared from late April until early July-because the company had been unable to pay printing costs, according to several people who were present at the session and asked to remain anonymous. The break in publication resulted in significant lost revenue and could make it hard for Penthouse to sell future ads.
Read the rest of this story at the MSNBC link below....