FriendFinder Networks, publisher of the Penthouse Magazine and various adult entertainment sites, has filed for Chapter 11 bankruptcy protection.
The publication's owner said that bankruptcy protection is the most efficient way for it to improve its balance sheet, News.com.au reported.
The California-based firm, which runs a string of online dating websites, had to deal with lower income and reported a loss of 49.4 million dollars in its last fiscal year.
The company said that it is looking to refinance some of its debt through an agreement with certain noteholders that would eventually return control of the company to the FriendFinder Networks founders.