Playboy replaces Christie Hefner with Scott N. Flanders

Playboy Enterprises Inc., the men's magazine publisher, named Scott N. Flanders as chief executive officer to replace Christie Hefner, who stepped down in January after two decades.

Flanders, 52, was CEO of Freedom Communications Inc., the privately held owner of the Orange County Register newspaper and televisions stations, for three years, Playboy said today in a statement. The executive, who began his career as a tax and business consultant at Coopers & Lybrand, also was chief executive of Telstreet.com, an Internet-based retailer.

Playboy has cut jobs in the past year to counter falling advertising sales. The unprofitable publisher said last month it is considering raising the price of the magazine, reducing the frequency of publication or cutting its circulation.

Flanders said in an interview today that he joined Playboy for the "long term."

"That's my orientation," he said. "That's my track record and it's what I intend to do here."

Chicago-based Playboy fell 36 cents, or 11 percent, to $2.97 at 4:05 p.m. in New York Stock Exchange composite trading, before the statement. The shares have gained 38 percent this year.

Flanders will join the board of directors, the company said. Christie Hefner, daughter of founder Hugh Hefner, had been CEO since 1988.

Playboy magazine's U.S. sales fell 16 percent to $13.5 million in the first quarter. Ad revenue plunged 26 percent at the print and digital unit. Playboy magazine's ad sales may fall 39 percent this quarter, the company said last month.

In addition to the magazine, Playboy creates videos for its Web site and for cable-television networks and licenses products with its bunny character.