Peekay Plans Sale of Chain as It Files Chapter 11

Peekay Plans Sale of Chain as It Files Chapter 11

AUBURN, Wash. — Peekay Boutiques, which operates a retail chain of sexual wellness products under various store brands, filed for Chapter 11 bankruptcy protection yesterday reporting $72.6 million in debts.

Under four banners — Lovers, Christals, ConRev and A Touch of Romance — the company operates the bulk of its 46 stores in Washington state and Oregon, but also has locations nationwide. It also has affiliated ZJ Gifts stores in Texas, Colorado and Oklahoma.

In the Chapter 11 filing, Peekay listed about $1.1 million in trade debt to various well-known sex toy and novelty manufacturers that are creditors with unsecured claims. The sex toy maker with the largest claim is owed $293,000 for unpaid merchandise.

Auburn, Wash.-based Peekay said in the filing it was seeking approval from the court for a stalking-horse-led marketing effort to sell its 46-store enterprise and website, LoversPackage.com. A bid deadline has been set for Oct. 18.

Peekay’s Lovers division consists of 23 stores in Washington and Oregon, along with nine A Touch of Romance stores located in Los Angeles, Orange, Riverside and San Bernardino counties.

ConRev has four stores in Los Angeles and Orange counties, as well as 10 Christal’s stores in Texas, Tennessee and Iowa.  

As of Aug. 1, Peekay had a total of 338 employees, 136 of whom are full-time employees.

Each of the 46 stores offer sexual wellness products, including massagers, vibrators, personal care and restraints, as well as personal lubricants, apothecary, candles, condoms, sensitizers and desensitizers.

Its lingerie products include a range of sleepwear, bodystockings, clubwear, costumes, corsets, baby dolls, hosiery and panties.  

Along with its retail brand portfolio, the company also offers Sutera private label merchandise.

The chain, founded in 1982 by Phyliss Heppenstall as a family business, was acquired in 2012 by private equity investors who borrowed heavily to acquire several regional retailers in hopes of building a national franchise.

One of the largest equity holders listed in Peekay’s Chapter 11 filing is Colbeck Capital Management, which has a 29 percent share of common stock. (The investment firm is familiar with the adult space. In 2011, Colbeck Capital branched out to the industry after it facilitated a $362 million loan to Mansef before it became the adult entertainment conglomerate now known as MindGeek.)

The Chapter 11 filing for bankruptcy protection capped years of unsuccessful restructuring and sale efforts, including an attempted initial public stock offering and tentative sale agreements, according to Albert Altro, Peekay's newly appointed chief restructuring officer.

Peekay filed with the bankruptcy court a motion for an order approving stalking-horse bid procedures for the company’s assets. The stalking-horse bidder — an entity that has already drawn out a plan to potentially acquire the assets — would be required to pay more than $30 million for assets.

“Although the debtors have been marketing their assets for more than 17 months, the proposed bid procedures contemplate a marketing process in the Chapter 11 cases and a bid deadline of Oct. 18,” a court filing said. 

Pictured: A Touch of Romance store

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

XBIZ Retreat Reloads Amsterdam Edition, Set for Sept. 2-5

XBIZ Retreat is making its anticipated return to Amsterdam, set for Sept. 2–5 at the chic Park Centraal Hotel.

Fantasy Gifts NJ Unveils 'Shave Stix' With Product Launch Event

Sexual wellness retailer Fantasy Gifts NJ introduced its new Shave Stix during a special event at its Lumberton location on April 17.

Motorbunny Now Available on 'Throne' Gift Platform

Motorbunny pleasure products are now available on Throne gift platform.

AV Bulletin: Age Verification Hits the Mainstream, Ofcom Sets a Date

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the country. In the meantime, state legislatures continue to weigh and pass AV bills, AV tech providers continue to tout their services, and legal challenges continue to play out in the courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Honey's Place Now Distributing Camtoyz

Honey's Place is now distributing Camtoyz pleasure products.

ToyChats Announces Reviewer Incentives

Recently launched pleasure product review site ToyChats has announced a giveaway program for reviewers.

Paradise Marketing Acquires CondomMan

Paradise Marketing has acquired CondomMan distribution.

RIDMII Debuts New Sex Doll Collection

Pleasure brand RIDMII has introduced a new line of sex dolls.

VVD Debuts Combo Set With 'Vkini,' 'Rider Desire'

Pleasure brand VVD has debuted a new bundle with its Vkini vibrating bikini top and Rider Desire saddle.

B-Vibe Expands 'Butties' Collection, Debuts Harness Sets

B-Vibe has expanded its Butties collection with six new anal plugs and introduced two new harness sets.

Show More