PLBY - Playboy Enters into Multiple New China License Agreements | Benzinga
LOS ANGELES, April 30, 2024 (GLOBE NEWSWIRE) -- PLBY Group, Inc. (NASDAQ:PLBY) ("PLBY Group" or the "Company"), a leading pleasure and leisure lifestyle company and owner of Playboy, announced that its China joint venture (the "China JV") has entered into several new licensing agreements with unrelated, third-parties based in China, representing a major step by the China JV to reinvigorate the Playboy brand in China. The series of new agreements is highlighted by a five-year license agreement with Guandong Duhan Industrial Co., Ltd ("Duhan"), establishing a stronger manufacturing and marketing channel for Playboy-branded men's and women's apparel and accessories in China. In addition, the China JV has entered into a new three-year license agreement for footwear, bags, and specialty apparel, extended its license agreement for underwear, and entered into a new event and venue license agreement that will bring sophisticated and distinctive Playboy-branded venues to Chinese consumers in major cities, including Shanghai, Beijing and Hangzhou.
"Our goal is to rebuild and grow Playboy's China business by working with stronger partners that have deep experience with the online platforms in China and are committed to responsibly utilizing the Playboy brand," said Ben Kohn, Chief Executive Officer of PLBY Group. "By working with higher quality partners and entering into shorter-term licenses with achievable minimum guarantees that incentivize them to invest in the brand and achieve excess sales and royalties, we are confident that we are taking solid steps in the right direction."
Pursuant to the agreement, Duhan will license select Playboy intellectual property in China for certain men's and women's apparel and accessories and cannot sublicense without the express approval of the China JV. Duhan is required to pay minimal royalties of approximately $37 million (based on current exchange rates) over the five-year term, ...