Magazine earlier told advertisers circulation declining, will cut issuesNEW YORK - The publisher of Reader's Digest, America's most popular general interest magazine, said Monday it will seek bankruptcy protection from creditors amid declining circulation, an advertising slump and large debts.
Reader's Digest Association Inc. said it has reached an agreement with a majority of secured lenders to restructure its debt. Under the plan, the lenders get ownership of the company and will erase much of the $1.6 billion they have in senior secured notes.
The monthly magazine, founded in 1922 as a collection of condensed articles from other publications, has been searching for a niche as the Internet upends the magazine industry's traditional business models.
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It is amazing that an organization like Reader's Digest would be so heavily in debt that it can't weather one bad year of economic activity.
ReplyDeleteIt is a real shame what is happening to business icons in this Obama economy. I love readers digest and have been reading it for 40 years!
ReplyDeleteMaybe we should raise the magazine tax!....( Just kidding, but that's the way the Dumbocrats think!)