Reader’s Digest Seeks Bankruptcy Protection Again

February 22nd, 2013 by Reed Allmand

Readers Digest Bankruptcy

After just reemerging from bankruptcy in 2010, Reader’s Digest once again files for Chapter 11 protection.  The parent company of the publication, RDA Holding, is using the filing to restructure the company while dealing with outstanding debt obligations topping over $1 billion.  As one of the oldest publications to have graced coffee tables across America for over 90 years, the magazine is struggling to maintain readership due to economic changes and digital innovations.

Reader’s Digest is known for being one of the first publications to report on the dangers of cigarette smoking during the early 1950′s.  The magazine went public in 1990 after being founded by Lila and Dewitt Wallace.  RDA Holding publishes more than 70 magazines with close to 50 editions of Reader’s Digest.

Documents related to the filing claim Reader’s Digest have roughly $1.2 billion in liabilities with just over $1 billion in assets.  Robert E. Guth, chief executive officer of the company, claims the filing is a necessary course of action that will help the company efficiently handle its financial issues so the company can continue to focus on their brands and products.  The magazine industry itself has been struggling to maintain print subscribers with more readers recommending digital access.

The first bankruptcy filing was in August of 2009 due to decreasing advertising from a previous acquisition.  The previous filing also helped reduce debt, but after reemerging in 2010, the company still had a heavy debt load while dealing with decreasing international sales.  Today, the company has over 20 brands in more than 70 countries. In the United States, it continues to be one of the most popular publications with more than 5 million subscribers.

Reference: http://dealbook.nytimes.com/2013/02/18/readers-digest-files-for-bankruptcy-again/

http://www.thewrap.com/media/column-post/readers-digest-files-second-bankruptcy-78086

avatar

About Reed Allmand

Website

Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand

Subscribe

Subscribe to our e-mail newsletter to receive updates.

FAQ

Why do I need to submit a new wage order when I modify my plan

When we modify your bankruptcy plan we are changing your plan payments. This means that we have to get with your employer and change the terms and amount of your wage order. The only way we can do that is by filling out a new wage order form.  

Learn More
What happens if the stay terminates on my home?

If the bankruptcy stay terminates on your home that means that even though your in bankruptcy, your creditor can pursue all there legal remedies they can pursue if you were not in bankruptcy. This includes foreclosure, and having your house sold and evicting you from your house.

Learn More

Find Location

map
  • Dallas Bankruptcy

    5646 Milton Street, Ste. 120 Dallas, Texas 75206
  • Fort Worth Bankruptcy

    860 Airport Freeway, Suite 401, Hurst, Texas 76054
  • More Locations

Meet Our Clients