Honey Birdette’s parent company PLBY Group has sold off sexual wellness retailer Lovers, as part of a group-wide strategic review that involves Honey Birdette.
In a statement by PLBY, Lovers was sold to LV Holding, LLC for approximately US$13.5 million.
“The sale of Lovers represents another successful step by the company towards a more capital-light business model that is focused on its hero Playboy brand.”
It is the second brand sell-off by PLBY this year, with the company exiting its Yandy business in April 2023. In May, the company announced a strategic review of its brand portfolio that included Australian-born Honey Birdette.
PLBY took on Moelis & Company to assist with the strategic review process, with another enlisted to review Lovers.
“In addition to selling Yandy a few weeks ago, streamlining operations and reducing costs, we have signed a binding term sheet to outsource our Playboy e-commerce business, and we have also hired bankers to explore strategic alternatives for both Lovers and Honey Birdette as we move to a fully capital-light model,” PLBY CEO Ben Kohn had said in May.
In the second quarter of FY23, Honey Birdette recorded a US$4.1 million loss in sales. This is an 18.2% year-over-year decline to $18.3 million from $22.4 million.
Third quarter results are expected in early November.