In what is the least happy ending ever, the parent company of AdultFriendFinder.com is filing for Chapter 11 bankruptcy. FriendFinder Networks, which also publishes Penthouse magazine, said Tuesday that is plans to reduce its debt by $300 million and will hand over control of the adult-themed social networking site to two noteholders.
As Reuters notes, the size of FriendFinder and its affiliates has an impressive reach online. The brand is most well-known for its live video shows, chatrooms and its ubiquitously raunchy adult social networking site. Court documents reveal that FriendFinder’s 8,000 websites count more than 220 million members and 750,000 paid subscribers.
However, FriendFinder has only generated $300 million in revenue last year, but hasn’t turned a net profit since 2008. The company blames a decline in membership and increasing affiliate fees. It also stated that some credit card companies aren’t processing payments made on the site without giving them a reason.
The troubled company tried filing for an IPO in 2008 seeking a $460 million valuation, however it only raised $46 million. It also tried to purchase Playboy for $210 million but that deal also fell apart.
Sounds like somebody needs to watch a live cam show to relieve their stress.