The company that owns Penthouse magazine and a host of online dating sites, including AdultFriendFinder.com, has filed for bankruptcy.
Friend Finder Networks Inc. has filed for Chapter 11 bankruptcy after a loss of around $50 million in the last fiscal year, and $10 million in the most recent quarter.
The Californian company publishes Penthouse and owns dating sites that include AdultFriendFinder.com, FastCupid.com, PerfectMatch.com and BigChurch.com.
Court documents state that the company’s network included more than 8,000 websites that had around 220 million members, and 750,000 subscribers.
Among these were live video shows like Cams.com, chatrooms and adult social networking sites.
The social networking sites were a part of the company that took a huge hit with the rise of Facebook and Twitter.
Reuters reports that the revenue of their social media sites fell by 17.6% in a year.
Data from Reuters site also found that the company didn’t record a profit since 2008.
The company reached a deal with creditors to enter Chapter 11 bankruptcy protection, which will cut their debt by $300 million.
Friend Finder’s chief executive, Anthony Previte, said in a statement:
“The agreement with the overwhelming majority of our noteholders will allow FriendFinder Networks to refinance our long-term debt, permit us to reinvest in our business, and position some of the strongest brands in the market for additional growth.”
The company bought Various Inc., which owned AdultFriendFinder.com, in 2007, and changed its named to Friend Finder Networks in 2011.
They also attempted, unsuccessfully, to buy rivals Playboy in 2010 for $212 million.
Penthouse, which was published by Friend Finder Networks was founded by Bob Guccione in 1965 as a rival to Playboy.