PLBY Group is exploring strategic alternatives for intimate apparel brand Honey Birdette.
PLBY Group CEO Ben Kohn confirmed the business has retained Moelis & Company to assist with the strategic review process. Sage Group has also been enlisted to conduct a review of its Lovers apparel brand.
“Given the continued strong performance of our creator platform, which has maintained a weekly GMV CAGR north of 10% since the beginning of the year, with GMV up 2.4x in Q1, we have made the decision to fully exit operating our consumer products businesses and to focus all our efforts on our creator platform and licensing business," Kohn said.
“In addition to selling Yandy a few weeks ago, streamlining operations and reducing costs, we have signed a binding term sheet to outsource our Playboy e-commerce business, and we have also hired bankers to explore strategic alternatives for both Lovers and Honey Birdette as we move to a fully capital light model.”
PLBY Group has not set a timetable for completion of the strategic review process.
Last month, PLBY reported that Honey Birdette is preparing to open an additional 15 retail locations across the United States by the end of 2024. In April, PLBY exited from its Yandy subsidiary and announced a strategic incorporation of its sexual wellness brand Lovers into the core business.
The company confirmed its lifestyle and media brand Playboy and Honey Birdette were expected to become its core apparel brands.
PLBY Group revenue for the first quarter of 2023 was $51.4 million. Net loss was $37.7 million and adjusted EBITDA loss was $10.8 million, which included $6.7 million of losses related to Yandy, Playboy e-commerce, inventory write-downs and the deferral of revenue related to cash collections from China given contract renegotiations.
PLBY Group acquired the Australian-born Honey Birdette in 2021 for US$333 million.