Playboy expects larger 2nd-quarter charge for Manhattan office closing

Playboy expects bigger 2Q charge

NEW YORK — Adult entertainment company Playboy Enterprises Inc. said Tuesday it expects to take a bigger restructuring charge in the second quarter than it previously estimated.

The company, which has struggled with falling advertising revenue amid the recession, now expects a charge of $9 million related to the closing of its Manhattan office. It previously expected a charge of about $4 million.

Playboy blamed the “significant deterioration in the New York real estate market” for the bigger charge.

The company also expects additional restructuring charges for the remainder of its 10-year lease, averaging $1 million a year.

Playboy plans to post its second-quarter results on Aug. 4.

Shares of the Chicago-based company fell 2 cents to close at $2.46.