I guess the Internet has made Penthouse useless. They failed to change with the times.
For years, Penthouse has been squeezed from both directions by the Scylla and Charybdis of men's entertainment. On the one side, the monster growth of hard-core pornography on the Internet has meant that consumers no longer need to suffer the embarrassment of receiving their mail in plain brown wrappers. On the other side, the rise of laddie publications like Maxim and FHM has meant there are publications that show a lot of skin without the stigma of being pornographers.
Penthouse should have bought some of these other magazines or web sites before their cash flow went to hell.