Chicago- from www.chicagobusiness.com — Playboy.com Inc. has sued the company that handles its e-commerce, claiming the firm is attempting to wiggle out of its contract instead of admitting it’s in over its head.

The e-commerce division of Chicago-based Playboy Enterprises Inc. filed a lawsuit Wednesday against eFashion Solutions LLC of Secaucus, N.J., for breach of contract. Playboy wants a federal judge to order eFashion to pay damages and honor its business agreement until Playboy can find a suitable replacement.

Losing eFashion as manager of Playboy’s Bunny Shop “will irreparably harm Playboy, forcing Playboy to shut down its e-commerce and catalog business,” the suit said.

According to the suit, eFashion wants to end the business relationship on July 1, claiming that Playboy breached the terms of its contract.

A representative for eFashion — which also runs e-commerce for designer clothier DKNY and sports apparel maker New Era — was not available for comment.

The digital business is separate from Playboy’s licensing unit, which plays a crucial role in Playboy’s efforts to reverse is financial misfortunes. The media company lost $13.7 million in its first quarter and recently cut 25% of staff.

Scott Flanders, who takes over as Playboy’s CEO on July 1, has said that he plans to build Playboy’s licensing business into the company’s biggest unit. Mr. Flanders replaces Christie Hefner, daughter of Playboy founder Hugh Hefner, who resigned in January.

Playboy hired eFashion in January 2008 to manage, plan, market and fulfill orders for its online and catalog sales, the suit said. All online and catalog operations were transferred by March 2008. Three months later, a Playboy executive paid a visit to eFashion with concerns about the operations, the suit said. In the court document, Playboy said that in 2007, its e-commerce and catalog division generated $17 million in sales, but under eFashion’s management projected revenue was on track to be between $4 million and $5 million.

EFashion CEO Ed Foy said his company couldn’t operate under the financial terms of its agreement, the suit said. Playboy claims in October it signed a modified contract with eFashion that included concessions including slashing the first-year minimum royalty payment to $750,000 from the previously agreed $1.5 million. Playboy claims that eFashion has yet to deliver the first-quarter payment of that royalty.

“Throughout the parties’ relationship, Playboy has continued its good faith efforts to sustain the relationship. . . .EFashion, however, has repeatedly failed to honor its commitments,” the suit said.

Mr. Foy came to Chicago earlier this month to meet with a Playboy executive over dinner, the suit said. At that time, Mr. Foy gave Playboy a letter claiming his company would cease operations with Playboy because the media company was in breach of contract. Playboy’s suit did not detail why eFashion claimed Playboy was in breach of contract.