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The company built hotel resorts and soon added not only modeling agencies but film, book, and record companies to the empire. Hefner traveled the world in the Big Bunny, his private jet, and divided the rest of his time between a mansion in Chicago and one in Los Angeles. By 1972 circulation had hit 7 million copies a month, earning $12 million in profits for the year.
Then, in 1973, disaster struck. The U.S. experienced a recession, and in addition Playboy faced stiff competition owing to the explosion of more explicit men's magazines such as Penthouse. Circulation plummeted 2.5 million a month within a year, while Playboy clubs and resorts went seriously into the red...
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