Reader's Digest Files for Bankruptcy Protection for Second Time in Four Years
Posted on March 3, 2013The parent company of Reader's Digest, RDA Holding Co., has filed for Chapter 11 bankruptcy protection. This is the second time that company has filed for bankruptcy protection in the past four years. The company also filed Chatper 11 in 2009. The company says its latest bankruptcy filing will help it reduce debt and focus on its North America publishing brands. NPR reports that the company plans to quickly emerge from bankruptcy in under six months.
Robert E. Guth, president and ceo of RDA, said in a statement, "The complex transformation that we began 18 months ago under the leadership of a new senior management team has resulted in a more streamlined, more focused, and more profitable business, but we have unfortunately been unable to align our debt levels correspondingly. The Chapter 11 process, which will facilitate a significant debt reduction, will enable us to continue to redefine our business by focusing our resources on our strong North America publishing brands, which have shown a new vitality as a result of our transformation efforts, particularly in the digital arena."
USA Today reports that Reader's Digest is still the fifth most popular magazine in the U.S. It has a circulation of 5.5 million.