American Media, publishers of celebrity tabloids National Enquirer and Star, and business partner of Playboy, have contended that the agreement with Playboy will not be hampered in any way despite the company planning to seek federal bankruptcy protection.
The business operations contract with Playboy is expected to continue as usual through reorganisation, the company clarified.
AMI chairman and CEO David Pecker said despite the bankruptcy process, American Media's publications "will function seamlessly, staff will be unaffected by the reorganisation and customers should not notice any difference."
As per the terms of this "pre-packaged bankruptcy," AMI, which also publishes titles such as Men's Fitness and Shape, would be able to return to business as usual in about 60 days.
"American Media is engaging in this strategy from a position of financial strength and confidence," Pecker said.
American Media, like other publishers of newspapers and magazines, was hit hard during the economic downturn, which came on top of a long-term shift by advertisers away from weekly print titles.