TMZ reports that a Playboy (PLA) shareholder has filed a lawsuit against the company, alleging that majority shareholder and chief creative officer Hugh Hefner has intentionally sabotaged multiple deal possibilities in an effort to hold onto his own lifestyle.

"If you were Hugh Hefner, 81, would you give up the parade of busty blonds, the fancy mansion and the reality TV show for a payout?" the lawsuit asks. "Hefner has continued to live the good life and make sure everyone knows it. Hefner remains in the limelight, showing up at media events and at the Playboy mansion ... with his girlfriends by his side."

Playboy is such a mess that even the hint that a company is interested in it triggers a reaction. Oak Hill Capital Partners, a private equity firm, announced Wednesday that it has no interest in buying ailing adult media company Playboy (PLA), despite previous media reports indicating the contrary. Of course, this sent Playboy's shares down 3.7%. Oak Hill didn't just say "no way" to the present but made it clear for the future as well.

This follows a statement by Golden Gate Capital that it wouldn't be involved in a Playboy acquisition, again, despite suggestions in the media that it might make a move for the bunny. The latest possible buyer is Iconix Brand Group, which is generally hungry for brand acquisitions. Playboy is keeping its mouth shut on the matter.

Playboy (NYSE: PLA) published its Q1 results today. Any longtime follower of the company will note that things haven't changed. We're still talking about revenue declines and losses. When will the Bunny finally hop back into reliable profitability? No one really knows when (if) that will happen.

On a reported basis, Playboy said it lost $0.41 per share. If you strip out charges, you get a loss of $0.15 per share. This number was a few cents better than the expectations of analysts according to this source. Be that as it may, they certainly don't meet my expectations. The adjusted loss is essentially the same as last year's number. I suppose we have to give the interim CEO Jerome Kern a chance. As you'll recall, Christie Hefner finally gave up her throne earlier in the year (thankfully).

Christie Hefner became the CEO of the company her father started in 1988, and it's been what could charitably be called a disaster for shareholders. Shares of Playboy Enterprises Inc. (NYSE: PLA) closed on Friday at $1.75. The stock traded at more than 5 times that price in the early nineties, impressive given that the company doesn't even pay dividends.

In a press release announcing her departure there was, of course, no mention of that: Hugh noted that " Of course, as her father, my first priority is Christie's happiness. While I will miss her leadership here, I believe that she will go on to achieve even greater personal success."

Awww. Ms. Hefner will remain as CEO until January 31st of 2009, and will stay on the board of directors until a replacement is found.

That a CEO could remain at the helm of a company for 20 years even as shareholder value evaporates is a testament to the power of nepotism in corporate America, and the unwillingness of independent directors to stand up and make changes.

The message for investors is this: Always be skeptical of a CEO who isn't the founder of the company but shares the same last name. It's possible that they really do deserve their title and are brilliant leaders but more likely, the monarchical rule will be to the detriment of long-term shareholders.

Oh, Playboy (NYSE: PLA)! The news just keeps getting worse. I was checking out the stock quote this morning and saw that the sexy company's shares (by "sexy company" I refer to the fact that Playboy makes its money off naked women, I do not mean to imply that this is an awesome growth situation, as if you needed to be reminded, right?) are down to $1.75. Can that be right? I'm afraid it is. I then had to check the news to see what awful catalyst reared its ugly head this time. I found one that was posted earlier in the week at paidcontent.org. It looks like Playboy is going to be riddled with charges in the third quarter and will be ditching 80 jobs. It'll generate a net loss in Q3. And one final thing: it's getting out of the DVD business.

Say what? Are you kidding? The article also displayed a memo from CEO Christie Hefner. She basically tries to spin the exit from the DVD business as some sort of smart strategic move. Heck, it looks to me more like a move that she had no choice but to make to save money. I understand her thoughts about shifting to digital distribution, but come on, if the company can't make it in the home-video arena, then there's something really, really wrong with the business. The brand's power is being destroyed by all the competitive forces in the adult space. X-rated content is everywhere on the internet, amateurs can start up their own websites pretty easily, and clips can be posted and accessed on YouTube at a moment's notice. These are trying times for Playboy, and the CEO needs to realize that aggressive action must be taken to improve the brand equity of the Bunny.

I get depressed whenever I read a Playboy Enterprises (NYSE: PLA) earnings report these days (see more of today's earnings news). I mean, sex sells, right? And one has to assume that Playboy has the best brand equity when it comes to selling sex, correct? Apparently not. Playboy's situation seems to be getting worse. The magazine is no longer the cool taboo it once was, the internet is killing it, and subscriptions and newsstand sales are fading. The magazine is arguably the driving heart of the brand. Without it, things will be rough. The numbers tell the tale.

For the second quarter, revenues declined over 14% to $73.4 million. The net loss was 6 cents per share. In the year-ago period, Playboy booked a 6 cents per-share profit. According to Briefing.com, revenue estimates were missed, as were expectations for earnings. In fact, Playboy missed by 11 cents! Not sexy at all.

All of the major operating segments saw declines in their top lines. Licensing increased its operating income by 9%. Publishing, believe it or not, actually narrowed its operating loss. Neither of these two positives is worth much in the grand scheme of things.

Playboy's (NYSE: PLA) shares are hovering near a 52-week low as I write this. The catalyst, you ask? The sexy company reported some dismal earnings this week. Net sales decreased 8%. The net loss came in at $0.09 per diluted share versus positive net income of $0.04 per diluted share in the previous year's quarter.

Even if you look at some of the adjustments, the Playboy story just isn't a seductive one. And according to a Reuters article, expectations were for a profit of $0.06 per share after adjustments. The net income of each Playboy operating division headed in a downward direction. And publishing, well -- that's been the saddest segment of all for a while now.

I have a question for Christie Hefner: Are you serious about turning your father's company around? Seriously. I've been giving Playboy the benefit of the doubt now for quite some time, and I'm not sure I can do that anymore. I want to, believe me; I'm a guy who has always been in love with the Playboy lifestyle. And, remember, the invitation is always open if you need me to come over to the Mansion to help you generate some new marketing strategies.

Playboy Enterprises, Inc. (NYSE: PLA) may not be doing so well, but it's still one of my favorite companies -- I'm a guy, so this makes sense. The company reported Q4 and full-year earnings today -- losses have widened, and I'm sure not a few investors out there are questioning the value of the brand.

Total net revenues saw a slight decline for the quarter, coming in at roughly $86 million. The company lost 3 cents per share on these revenues; in the previous year's quarter, Playboy actually booked a much more pulchritudinous 11 cents per share of positive net income. For the year, total net revenues didn't jump like a bunny -- $340 million versus $331 million. Net income, however, was much better, doubling to 15 cents per share. The company's year-end results benefited from a decline in interest expense, income tax obligations, and other costs. Sales of artwork were also cited by CEO Christie Hefner in the release.

The licensing operations are performing, but domestic TV and publishing are very weak. In fact, it is the publishing segment that really needs attention. It's been needing attention for a long time now -- for the year, subscription sales were down, newsstand sales were down, and advertising revenues rose by the smallest bit.

Long-term, I still have hope for Hugh Hefner's Playboy. It is an American icon, and its logo continues to propel licensing; plus, the company does have a nice presence in Vegas at the Palms Casino Resort. As Jonathan Berr reported back in November, you may want to remember that sex does indeed sell, and one has to assume that Playboy will be supplying that demand for years to come.

In what many may take to be a sign of the apocalypse, men's media company Playboy Enterprises Inc. (NYSE: PLA) lost money last quarter. Whoever thought the "Empire the Bunny Built" would have money woes? Are men no longer interested in what Playboy has to offer? Hardly. But why pay when equivalent stuff is available online for free? So Playboy has begun a concerted effort to focus on digital media with Playboy TV and online offerings with pay-per-view video on demand. Judging by recent earnings (August 7), the strategy is working. Instead of a $3.3 million loss as in 1Q 2007, Playboy posted earnings of $1.9 million. Revenues rose 6% to $85.7 million and operating income was $3.8 million. 2Q diluted EPS was $0.06, much better than last quarter's loss of $0.10 per share.

Playboy Magazine continues to lose money, as do so many other print media, posting a loss of $2.3 million for 2Q 2007. Both circulation and ad revenues remain in decline. So CEO Christie Hefner is leading Playboy into new ventures, including a new Playboy mansion in Macao to take advantage of the Chinese market. Playboy will own a 49% stake in this venture. Playboy is also expanding its international TV division, revenues up 16% to $13.7 million, and licensing arrangements, up 36% to $5.5 million.

Domestically, Playboy is trying to market itself as a social networking site (fully clothed) for the college crowd. It very recently launched PlayboyU.com to coincide with the return to classes. Too early to tell whether this ad revenue based site will offer any competition to YouTube and Facebook. If too successful, site traffic will incur the wrath of college IT managers who will block connections to it.

Just as no one actually reads Playboy for the book reviews, no one invests in Playboy because it may be a good investment. The stock began the year trading at $11.61. So far the stock has lost 8% of its value, closing Tuesday at $10.85, down $0.08.