After dispute, eFashionSolutions to continue to manage Playboy's online business
Playboy Enterprises and e-commerce and catalog service provider eFashionSolutions have settled a dispute over the operation of Playboy's e-commerce and catalog businesses. The companies announced the deal on October 20.
EFashionSolutions said in a statement that it will continue to manage the e-commerce operations of Playboy's retail brands ShopTheBunny.com and PlayboyStore.com. Playboy would not comment on whether it will continue to run a catalog business. “We look forward to continuing our relationship with eFashionSolutions, which will help us continue to grow our e-commerce business,” said Scott Stephen, EVP of Playboy's print and digital group, in a statement
In June, Playboy.com Inc. filed a suit claiming eFashionSolutions had made moves that would irreparably harm the media company and force it to shut down its e-commerce and catalog businesses. Playboy claimed in a filing that the businesses generated nearly $17 million in combined annual revenue before eFashionSolutions took them over, but their total revenue dropped to between $4 million and $5 million annually under eFashionSolutions' operations. Playboy's suit followed eFashionSolutions' claim that the former had breached the contract.
EFashionSolutions couldn't be reached for comment.