The company's been struggling because of the global ad slump. The Chapter 11 filing will convert $1.6 billion in debt into equity. Posted by Charley Blaine on Monday, August 17, 2009 1:29 PM The publisher of Reader's Digest, the country's most popular general interest magazine, said today it will seek Chapter 11 protection from creditors amid declining circulation, an industry-wide advertising slump and large debts.
Privately held Reader's Digest Association said it has reached an agreement with a majority of secured lenders to restructure its debt."
It's really a shame that a venerable company like the Digest has to resort to bankruptcy. A sign of the times.
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