PLBY Group, Inc. recently announced its decision to sell its Lovers business for $13.5 million to LV Holding, signaling the company’s intention to prioritize its core Playboy brand. The sale will involve Playboy Enterprises selling the entire equity of its subsidiary, TLA Acquisition Corp., which currently holds the Lovers business. The transaction is expected to be completed in the fourth quarter of 2023, subject to customary closing conditions.

Lovers, a well-known sexual wellness retailer, operates both online and brick-and-mortar stores in five U.S. states, boasting a total of 40 stores. With its strong presence in the industry, Lovers has established itself as a key player. By divesting itself of this business, PLBY Group aims to streamline its operations and fully concentrate on its flagship Playboy brand and its subsidiary, Honey Birdette, an Australian brand.

This sale is part of PLBY Group’s ongoing efforts to adopt a more capital-light business model. In line with this strategy, the company previously sold Yandy, a lingerie and costume retailer, for $3 million in April. By divesting these non-core brands, PLBY Group can focus its resources on maximizing the value of its most significant brands, Playboy and Honey Birdette.

Overall, this sale reflects PLBY Group’s commitment to strengthening its position in the market and delivering value to its shareholders. By prioritizing its core brands and divesting non-core businesses, PLBY Group is well-positioned to invest in the growth and development of Playboy and Honey Birdette. This strategy further solidifies the company’s position as a leading player in the lingerie and sexual wellness industry.

Useful links:
1. PLBY Group Official Website
2. Playboy Official Website