Playboy awarded $81M in damages in arbitration against former licensee

Playboy (PLBY) has prevailed in its arbitration against its terminated licensee, New Handong Investment, and has been awarded damages of approximately $81M, including accrued interest. As previously described in further detail in the Company’s periodic reports, including in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025, filed with the U.S. Securities and Exchange Commission on August 12, 2025, on February 8, 2024, a wholly-owned subsidiary of Playboy, Playboy Enterprises International, initiated arbitration in the Hong Kong International Arbitration Centre against New Handong relating to PEII’s termination of its license agreement with New Handong due to ongoing, uncured material breaches by New Handong. On September 5, 2025, the Arbitration tribunal issued its binding, non-appealable decision in the Arbitration, including the following: the termination notice issued by PEII was found to be lawful and effective; New Handong was ordered to cease any further use of Playboy’s property and materials, including but not limited to the production, sale, or distribution of Playboy products; and New Handong is required to make payments to PEII for guaranteed royalties outstanding at the time of termination, a termination fee, and unpaid marketing expenses, plus interest thereon, and certain other fees and expenses, totaling approximately $81M. The Tribunal rejected all of New Handong’s counterclaims as well as certain other claims brought by PEII. New Handong has until September 20, 2025, to make full payment of the damages awarded. Playboy intends to pursue all appropriate enforcement actions against New Handong but cannot provide assurance that it will be able to collect any or all monetary damages from New Handong.