Before the start of trading, Playboy said that Hefner will stay on as CEO until Jan. 31 and remain on the board until a replacement is found. In the meantime, the company said it has appointed Jerome Kern, a long-time director, to be interim non-executive chairman.
In the announcement, Hefner said that "just as this country is embracing change in the form of new leadership, I have decided that now is the time to make changes in my own life as well" but gave no other specific reasons for her departure.
She leaves as the company remains mired in the loss column, stung by charges and dwindling revenue across almost all of its divisions.
Media companies have been hit hard in the current recession, and those like Playboy have not been exempted. Skittish advertisers often cut their ad budgets first, while consumers can find a plethora of free adult fare online and have become increasingly reluctant to pay for it.
The stock has also suffered, scraping to an all-time low of $1.03 just weeks ago after trading just shy of $10 at this time last year. On Monday, however, it jumped more than 11% to $1.95 in morning action.
Still, Kern said that during Hefner's time at the company, she oversaw its "transition from a domestic magazine publisher to a global lifestyle and multi-media company," directing its entry into TV, online and mobile offerings.
"Under her leadership, the licensing group grew from insignificance to become the company's most profitable business," Kern said.
For his part, Christie Hefner's father Hugh said he asked his daughter to "step up as president when the company faced serious financial difficulties more than two decades ago," and that as the result of her efforts, "the company today has more consumers and fans than at any time in our history."
Source: Market Watch
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