Reader's Digest Parent Seeks Bankruptcy Protection

Reader's DigestNEW YORK (AP) - The 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 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.

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

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. The circulation-tracking company said Reader's Digest is the fifth-biggest U.S. consumer magazine by circulation, behind two AARP publications, Game Informer Magazine, and Better Homes and Gardens.

RDA's Reader's Digest Association Inc. filed for Chapter 11 protection in 2009 in the midst of a recession and a drop in advertising and circulation. The company emerged from bankruptcy in early 2010 with less debt, but has still struggled.

Robert E. Guth, RDA's president and CEO, said a "complex transformation" begun 18 months ago under new senior managers "has resulted in a more streamlined, more focused, and more profitable business, but we have unfortunately been unable to align our debt levels correspondingly."

Besides Reader's Digest, the company publishes a food publication, Taste of Home, and has 21 brands globally.

The bankruptcy filing in the Southern District of New York covers the company's U.S. businesses. It said its international operations are not part of the filing. It said it is still looking for agreements to sell and license its international businesses, and expects to finalize some deals in coming weeks.

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pattyhar

The new "leadership" at RD has killed the magazine. They publish the same articles on "health" and exercise every month, accompanied by articles written by a bunch of nobodies espousing faulty logic and unfounded medicine and science. It probably is time for RD to die a natural death, but I still subscribe--occasionally some of the jokes are funny!

February 20 2013 at 6:43 PM Report abuse rate up rate down Reply
pattyhar

The new "leadership" at RD has killed the magazine. They ppublich the same articles on "health" and exercise, accompanied by articles written by a bunch of nobodies espousing faulty logic and unfounded medicine. It probably is time for it to die a natural death, but some of the jokes are still funny!

February 20 2013 at 6:38 PM Report abuse rate up rate down Reply
setanta_1

well well well--when readers digest WAS REFLECTIVE of the traditional conservatives,it did fine.
when they decided to go ""modern"" and libtard---LOL !!!!!!!!!!!!!!
libs are the cheapest $%^s on the face of the earth.
their radio hot air went belly up and npr CONTINUES to get tax payer funds-
and how many magazines do they subscribe to ???

remember THEIR BOYCOTTS ???? LM@O !
bunch of loud mouth losers .

February 18 2013 at 11:31 PM Report abuse rate up rate down Reply
1 reply to setanta_1's comment
rostra

What are you, like 12 years old? Print media began its downfall with the advent of personal computers, which by the way was in the beginning of the 1980's under Reagan

February 19 2013 at 9:31 AM Report abuse rate up rate down Reply
1 reply to rostra's comment
setanta_1

whattsa matta rostraaaaa ? touched a nerve here ? cheap libs ?
no print mediyuuh SURVIVED the internet ?
nothing's LEFT ?
and it's all ronnie raygun's fault ? !
LM@O.

February 19 2013 at 10:15 AM Report abuse rate up rate down
barney

deny it

February 18 2013 at 10:20 PM Report abuse rate up rate down Reply
barney

deny it

February 18 2013 at 10:20 PM Report abuse rate up rate down Reply
kimn414

Have notreceived my pension check this month??? Is this why?

February 18 2013 at 9:52 PM Report abuse rate up rate down Reply
kimn414

Havn't received my pension check this month??? Is this why?

February 18 2013 at 9:52 PM Report abuse rate up rate down Reply
timber1647

Should we be playing Taps? Does anyone really read it? Are their ad rev's down?

February 18 2013 at 6:45 PM Report abuse rate up rate down Reply
mccglf

One of the most mismanaged businesses in the last 30 years. They went from the largest circulation, most profitable magazines on the planet to this. And they guys on top keep making big bucks, I am sure.

February 18 2013 at 6:37 PM Report abuse +2 rate up rate down Reply