Christie Hefner to Resign from Playboy
Hugh Hefner's daughter is stepping down as chairman and chief executive.
Dec. 8, 2008 -- NEW YORK (Reuters) - Christie Hefner plans to stepdown next year as chairman and chief executive of PlayboyEnterprises Inc after two decades on the job, the adultentertainment company said on Monday.
Shares of Playboy rose 14 percent in morning trading afterHefner, 56, daughter of Playboy founder Hugh Hefner, said shewould relinquish her role as CEO on Jan. 31. She will stay onthe company's board until a new CEO joins Playboy, whichpublishes one of the world's best-known adult magazines.
"Last month marked my 20th anniversary as CEO; just as thiscountry is embracing change in the form of new leadership, Ihave decided that now is the time to make changes in my ownlife as well," Hefner said in a statement.
Like many magazine and newspaper publishers, Playboy has abrand name that is more widely known than read. Circulation hasfallen as more people looking for adult entertainment andracier pictures of nude women turn to free sites online.
The company in October said it would take steps to save $12million a year, including eliminating its DVD business.
Jerome Kern will serve as interim non-executive chairman,while the company searches for a replacement. Kern, presidentof Kern Consulting LLC and former CEO of On Command Corp,joined Playboy's board in 2002.
Playboy shares rose 26 cents to $2.01 on Monday, andclimbed to $2.04 during the session. The stock has tumblednearly 80 percent this year.
(Reporting by Franklin Paul; Editing by Steve Orlofsky andGunna Dickson)