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  Reader's Digest parent seeks bankruptcy protection
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Last Editedkal  Feb 18, 2013 05:09pm
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News DateTuesday, February 19, 2013 01:00:00 AM UTC0:0
DescriptionThe parent company of Reader's Digest has filed for Chapter 11 bankruptcy protection for the second time in less than four years, saying it needs to cut its debt so it can keep restructuring.

RDA Holding Co. says it will keep publishing the magazine during the bankruptcy, and aims to be out of Chapter 11 within six months.

The circulation of Reader's Digest has declined because of competition from the Internet — shrinking by nearly two-thirds since 1995 — but it is still one of the world's most-read magazines.

The New York company said late Sunday that it plans to cut its debt load by 80 percent during the restructuring, leaving it with about $100 million in debt. It said it has already reached agreements with its secured lender and more than 70 percent of its secured noteholders. A group of its creditors have supplied $45 million in new financing to help Reader's Digest go through the process as part of a $105 million loan to repay existing bank debt.

As revenue declines, Reader's Digest has been selling off some of its assets. Its food website Allrecipes.com went for $175 million last year, and it sold its Every Day with Rachael Ray cooking magazine in late 2011. Meredith Corp., publisher of the Better Homes and Gardens magazine, bought both.

Reader's Digest paid circulation fell 0.6 percent to 5.5 million at the end of last year, according to the Alliance for Audited Media. That was about where it stood after cutting its guaranteed circulation in 2009. But in 1995, Reader's Digest had circulation of more than 15 million.

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DISCUSSION
 
PC:549kal ( -57.2262 points)
Tue, February 19, 2013 03:06:24 AM UTC0:00
Of all the magazines to have a circulation problem, this is one of the more surprising.

A few years ago, it was bought by a "liberal" media group. There was some fear that it would become more politicized. IMO, it hasn't. It still seemed to be the same magizine it was before that ownership change.

The biggest reason I thought Readers Digest would be more, but not totally, immune from the internet is because it's a good bathroom book.

Obviously I was wrong. I guess a lot of people surf the net while on the pot....
Do you surf the net while taking a SH*T?
I'm taking a dump while voting in this poll. 4 (50%)
Nope, never or rarely 3 (37.5%)
all the time, even while posting on OC 1 (12.5%)
8 Votes Cast
Polls Close February 25, 2013 12:00am
 
D:6086Jason ( 7718.4429 points)
Tue, February 19, 2013 03:39:25 AM UTC0:00
OC is a laxative when on the john.