Playboy Shareholders Sue Hugh Hefner Over Money, Lifestyle

Posted by Sara Zucker on February 15, 2010 04:03 PM

The venerable icon of male sexuality, Hugh Hefner, is being sued – by his own shareholders.

Playboy shareholder David Brown will represent his fellow minority shareholders in a suit filed against Hefner for “unspecified damages,” reports BusinessWeek. Despite shares dropping from $30 to $10 within ten years, Hefner has refused to relinquish his lavish lifestyle, and shareholders are not fine with that. Abigail O'Donnell, a spokeswoman for the company, refused to comment on the issue.

In the suit, Brown addresses Hefner's unabashed flaunting of excess: “[He] has continued to live the good life and make sure everyone knows it.” Furthermore, Brown and the shareholders are upset that the self-proclaimed senior playboy would place “his personal interests above and ahead of the interests of other shareholders and to their detriment."

The Playboy brand has been steadily on the decline for years, largely due to the proilferation of online porn that is easily accessible to men of every sexual inclination. The Playboy brand is simply another print publication that has been undermined by the prevalance, ease, and niche-specific reach of online content.

However, with the help of Hefner, Playboy has been able to extend its brand onto other platforms – such as a hit VH1 reality show, "The Girls Next Door." But the show centers around the escapades of Hefner's much-younger girlfriends. While "The Girls Next Door" may have helped to broaden the Playboy audience via cable television, the shareholder lawsuit shows that not everyone is pleased with the television program. In fact, some shareholders maintain that such frivolity has actually scared off potential buyers of the company.

Any readers care to speculate where the brand goes from here?

More about: Playboy, Hugh Hefner, VH1, The Girls Next Door, Entertainment

Bruce says:

Not a Hef fan - but what the shareholders fail to realize is that Hef and his lifestyle are a big part of the Playboy brand.

February 16, 2010 07:14 AM #

Carmen Lerm says:

What the shareholders have to realize is that the game has changed and if it was not for Hugh Hefner's ability to implement the strategy of marketing the wholesome attributes of (literally) the 'girl next door' - then there would be NOTHING for them to be a shareholder of. He is the brand - have some respect!

February 16, 2010 07:36 AM #

Tracy says:

It is perfectly possible for Hef to live the public, glamorous and exciting life of a playboy (or, "maintain his brand") while quietly keeping a closer eye on the money. That's just good business.

No one's saying the E! camera crews should catch him clipping coupons. Despite all the recession-driven publicity concerning thrift, most people in this country would rather die than have the neighbors know they're cutting back (also known as "maintaining their brand"). If the Couple Next Door can keep up their image, I'm sure the master, Hef, can, too.

Other shareholders in Corporate America should be so responsible.

February 16, 2010 08:02 AM #

RJ Hagel says:

Capitalism is a great thing. If shareholders don't like his lifestyle, THEN SELL YOUR STOCK. I am not sure why people feel that they have the right to tell others how to live. He has built a tremendous empire and as long as he can afford it, can live whatever lifestyle he chooses. Damn Democrats...

February 16, 2010 11:22 AM #

Art Ilano says:

"Damn Democrats"? Wouldn't that be ironic considering that Hugh Hefner is a die-hard Democract? LOL!

But I agree. Hef is the brand, despite his age and all. And if Playboy readers get a whiff of penny-pinching at the mansion, they'll lose their respect for the brand experience. You don't agree, then you sell your stock.

February 16, 2010 03:50 PM #

NIk says:

That is like saying that the Queen devalues the British brand - I'd think not despite the expense to tax payers.
Then again, when Charles becomes King........

February 16, 2010 04:45 PM #

Hot Topic sells $22 Playboy skirts (90-percent nylon). Out of curiosity, what exactly is the Playboy brand experience these days?

I'm the last person to advocate messing with what makes an iconic brand iconic (nor would I make heretical suggestions like "put the Mansion on the block and send Hef -- and his smoking jacket -- to an active adults community"). However, I would like to point out that today its stock was selling for less than $4/share. I'd say damage has already been done.

So yes, if the shareholders don't like it, they can sell, or not buy in the first place, if they don't like the course the majority shareholder is setting. On the other hand, I wouldn't recommend going public if you don't want others meddling with your cognac.

February 16, 2010 04:53 PM #

Mike Rindos says:

Hugh Hefner will never sell Playboy Magazine. He would rather give to his sons. So I hope that he continues the fight. Also there's a strange connection between a woman who's a non pornstar Tatiana Moore and this. Like when she poses for Hustler Magazine. A stockholder calls it quits. Hey go ahead and laugh. Because they laugh at the crazy guy until it's really true.

So I'll let you guys think about this for awhile.

February 19, 2010 01:29 AM #

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March 3, 2010 03:49 AM #

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The brand playboy has earned so many millions of dollars during its career, that lots of people can afford lots of useful things if shearing such millions among society.

March 23, 2010 05:42 AM #