Scott Flanders
The adult entertainment company Playboy has lured chief executive Scott Flanders away from Freedom Communications, owner of several Arizona newspapers, giving him the job recently vacated by the daughter of founder Hugh Hefner.
For more than three years, Flanders has been the president and CEO of Freedom Communications, which owns the East Valley Tribune in Mesa, the Yuma Sun and numerous other newspapers and TV stations nationwide. Under Flanders’ watch, Freedom has lost major footing in the media world, slashing hundreds of jobs and becoming seen as a risky borrower with little likelihood of repaying its debts.
Now, one of the most recognizable brands in the world hopes Flanders can do for it what he could not do for Freedom — steer the company toward success.
Playboy Enterprises, based in Chicago, has suffered the same fate as many other media outlets in recent years with advertising and readership migrating to the web. The company lost $13.7 million in the first three months of 2009, shortly after the resignation of Christie Hefner, the founder’s daughter who led Playboy for two decades.
In a statement released by the company, Flanders called this an “exciting time” to take over as CEO. “The evolution of the media industry and the global recession’s effect on consumer spending intensify the need for a creative and effective business model,” he said.
Flanders became president and CEO of Freedom Communications, based in Irvine, Calif., on New Year’s Day 2006 and worked to lead the company through one of its toughest periods of its existence.
Last October, the company’s flagship newspaper, the Orange County Register, laid off 110 employees to cut costs. Then in January, the East Valley Tribune in Mesa laid off more than 140 employees (disclosure: I was one of them) and reduced its days per week in print from seven to four. The paper has also since dropped its Saturday print edition, leaving it printing just three days a week.
Company wide, Freedom ordered mandatory time off without pay for most of its employees earlier this year. Under Flanders, the company also had to renegotiate its loans to keep from defaulting on them as its credit rating continued to decline.
Before taking over at Freedom, Flanders was the head of Columbia House Co., which at the time specialized in entertainment subscription services. Flanders led the company’s failed merger with online music retailer CDNow in 2000.
In its statement, Playboy chose to focus on his successes as head of Freedom, saying “he significantly expanded interactive revenues, established key partnerships and streamlined the organization.”
There is some indication that Flanders may bring a strategy to Playboy similar to the one he implemented at the East Valley Tribune. The Wall Street Journal said today the company is considering cutting back the frequency and circulation of its flagship magazine.