Reader's Digest is bankrupt - report
MANILA, Philippines - Another one bites the dust.
This time, it's the publisher of iconic magazine Reader's Digest, which has been around for 91 years and read by over 25 million people
Its publisher, RDA Holding Co., has filed for bankruptcy to cut its US$465 million debt and focus on electronic media, according to Bloomberg.
"The company listed assets and debt of more than $1 billion each in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in White Plains, New York. Under a restructuring agreement supported by Wells Fargo & Co., $465 million of remaining senior notes will all convert to equity," Bloomberg reported.
When it exits Chapter 11, the company expects to have whittled down its debts to about $100 million, an 80% cut.
This is the second time the company filed for bankruptcy. In August 2009, it cited drop in advertising funds as well as the $800 million debts that investor group led by private-equity firm Ripplewood Holdings LLC acquired when it bought the company in 2007 for $1.6 billion.
The company publishes 75 magazines globally including 49 editions of Reader’s Digest, Taste of Home, the Family Handyman and Birds & Blooms.
Reader’s Digest “sold more digital editions in December than we did newsstand editions,” Bloomberg quoted Reader’s Digest’s chief executive officer Robert Guth as saying.
Another global magazine, Newsweek, capped its 80 years in 2012 by ending its print run. It shifted to all-digital format to cater to more readers turning to online news. - Rappler.com