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SUNDAY, NOVEMBER 22, 2009
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Reader's Digest to File Chapter 11

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(Newser) – The latest media company to groan under debt in the current recession, Reader's Digest Association, yesterday announced plans to file for Chapter 11 bankruptcy. The publisher insists that "business as usual" will continue for its publications and employees, with no mass layoffs in store as the company slashes its debt load from $2.2 billion to $550 million, Reuters reports.

The company's flagship publication, doctor's office staple Reader's Digest, claims to be the world's largest-selling magazine, but the pre-arranged filing comes as little surprise to media observers. Reader's Digest, hit hard by shrinking ad revenues, has been struggling to cut costs since its 2007 purchase by an investor group led by Ripplewood Holdings.

A cover of Reader's Digest, whose parent company plans to file for Chapter 11 bankruptcy.
A cover of Reader's Digest, whose parent company plans to file for Chapter 11 bankruptcy.   (PRNewsFoto/Reader's Digest)
The cover of Reader's Digest publication Where the Birds Are.
The cover of Reader's Digest publication Where the Birds Are.   (AP Photo/Reader's Digest)
Dollar Savvy, a publication of The Reader's Digest Association, Inc.
Dollar Savvy, a publication of The Reader's Digest Association, Inc.   (PRNewsFoto/Reader?s Digest Association, Inc.)
In this March 15, 2008 file photo, Rachael Ray hosts a SXSW Music Festival day party in Austin, Texas. Reader's Digest publishes the food magazine Every Day With Rachael Ray.
In this March 15, 2008 file photo, Rachael Ray hosts a SXSW Music Festival day party in Austin, Texas. Reader's Digest publishes the food magazine Every Day With Rachael Ray.   (AP Photo/Jack Plunkett, file)
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4 comments
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Michael_CT
Aug 18, 09 6:56 AM CDT
they went from strength to dire. which was sealed by their new 'conservative' attitude. RIP. Reply
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tc909
Aug 18, 09 7:56 AM CDT
I hope it fails. The magazine went downhill years ago when they made it less geared towards "READING" and more pictures, celebrity interviews, and other fluff, just like all the garbage mags. Reply
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AnnieChrist
Aug 18, 09 2:46 PM CDT
Since they are also noted for their abridged versions of best-selling novels, they need only to submit about half the paper work required for most bankruptcies. Reply
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BurgerKing
Aug 20, 09 11:25 PM CDT
2007 sale? Sounds like the previous owners were pretty sharp. Reply
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