Playboy Elects Scott Flanders Chief Executive

Last month, it reported a quarterly loss of $13.7 million, compared with a $4.2 million loss in the year-earlier period.

Kern has said the company may cut Playboy magazine's frequency, reduce circulation or raise prices to stanch the bleeding.

"It is clear that this company cannot continue to sustain significant losses in a business that now comprises less than one-quarter of the company's revenue base," he said in May, discussing the future of the magazine in a call with analysts.

In a statement Monday, Flanders called it "a particularly exciting time to assume the role of CEO" even as he acknowledged the historic challenges facing the company.

"The evolution of the media industry and the global recession's effect on consumer spending intensify the need for a creative and effective business model," he said.