From www.chicagotribune.com- From magazine pages to staffing levels, everything about Playboy Enterprises Inc. has been shrinking — apart from the centerfold’s breast implants.
Within hours, the Chicago-based media company could have a new boss who will shrink it even more.
Jerome Kern, who took over as interim chairman and chief executive when Christie Hefner stepped down in January, is sounding like a potential candidate for the full-time post — which could be determined at a board meeting Wednesday. A Playboy spokeswoman declined to comment.
Without naming names, Kern told Wall Street investors earlier this week that a permanent CEO will be responding to their questions at the next scheduled earnings conference call in three months. “I am confident there will be a full-time, not interim, CEO hosting the next earnings call in August.”
He also promised “radical changes” ahead at his money-losing flagship.
The Chicago-based company is looking at raising the price and reducing the frequency of the monthly magazine, as well as cutting circulation and ad rates.
The aging skin book will introduce a “younger and fresher look,” beginning with the June issue that arrives on newsstands shortly, Kern said.
In January, Playboy appointed a new editorial director for the magazine, ex-Maxim editor Jimmy Jellinek. Its May issue still listed his predecessor, Christopher Napolitano, in that role. Octogenarian Founder Hugh Hefner continues as editor-in-chief.
Magazine revenues were down 16 percent in the first quarter from year-ago levels, and the company expects to report a 39 percent drop in magazine advertising sales in its second quarter. Its combined print and digital units posted a $3.6 million first-quarter loss.
“This company cannot continue to sustain significant losses in a business that now comprises less than one quarter of the company’s revenue base,” said Kern. “We’re in this business to monetize the brand as quickly and effectively and profitably as we can.”
Asked if the magazine can ever make a profit, he replied, “It’s too early to tell. Certainly the goal is to at least break even.