Reader’s Digest Filing for Bankruptcy, But Will Remain in Dental Offices

August 17, 2009

(ChattahBox)—Reader’s Digest Association Inc., crippled by $2.2 billion of debt, is filing for Chapter 11 bankruptcy, which would affect the Reader’s Digest magazine and other U.S. ventures.

The pocket-size magazine with its inspirational stories, homey recipes and money-saving tips, has served as the iconic reading material of choice in doctor’s and dentist’s offices, since the 1930s.

The bankruptcy filing will be a prearranged filing, as the company has already reached deals with its creditors to reduce its debt from $2.2 billion to a more manageable $550 million.

Chief Executive Officer Mary Berner made an announcement reassuring employees and subscribers to the magazine, that business would be conducted “as usual,” with no mass layoffs.

Reader’s Digest, is one of the largest selling magazines in the world, with offices in 45 countries. The company also publishes the food magazine Every Day with Rachael Ray.

The company has struggled to manage its debt, since the recession and an across the board downturn in print media earnings, as more people turn to the Internet for news and entertainment.

The prearranged bankruptcy filing is expected to be filed within the next two weeks.

Source


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5 Responses to “Reader’s Digest Filing for Bankruptcy, But Will Remain in Dental Offices”

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