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Reader's Digest parent seeks bankruptcy protection | Reader's Digest parent seeks bankruptcy protection |
(7 months later) | |
The owner of Reader's Digest magazine has filed for bankruptcy for the second time in less than four years after running into cash flow problems. | The owner of Reader's Digest magazine has filed for bankruptcy for the second time in less than four years after running into cash flow problems. |
RDA Holdings, along with more than two dozen affiliates, filed for a Chapter 11 bankruptcy in New York in order to try to reduce its $534m (£344.8m) debt load. | RDA Holdings, along with more than two dozen affiliates, filed for a Chapter 11 bankruptcy in New York in order to try to reduce its $534m (£344.8m) debt load. |
According to bankruptcy documents, RDA is claiming to have more than $1.1bn in assets and about $1.2bn in liabilities. It publishes 75 magazines across the world. | According to bankruptcy documents, RDA is claiming to have more than $1.1bn in assets and about $1.2bn in liabilities. It publishes 75 magazines across the world. |
RDA's chief executive, Bob Guth, said: "The Chapter 11 process, which will facilitate a significant debt reduction, will enable us to continue to redefine our business by focusing our resources on our strong north America publishing brands, which have shown a new vitality." | RDA's chief executive, Bob Guth, said: "The Chapter 11 process, which will facilitate a significant debt reduction, will enable us to continue to redefine our business by focusing our resources on our strong north America publishing brands, which have shown a new vitality." |
Guth is the company's third CEO since the company emerged from its previous bankruptcy in 2009. | Guth is the company's third CEO since the company emerged from its previous bankruptcy in 2009. |
According to the Financial Times, a Fitch ratings report last August named RDA as being among 31 US companies that had previously defaulted and were at a risk of another as they struggled to resolve operating cost issues and reduce their debt load. | According to the Financial Times, a Fitch ratings report last August named RDA as being among 31 US companies that had previously defaulted and were at a risk of another as they struggled to resolve operating cost issues and reduce their debt load. |
Reader's Digest was founded in 1922 by DeWitt and Lila Bell Wallace. By the early 1960s it had a global circulation of 23 million an issue with 40 international editions. | Reader's Digest was founded in 1922 by DeWitt and Lila Bell Wallace. By the early 1960s it had a global circulation of 23 million an issue with 40 international editions. |
Sources: Reuters/FT | Sources: Reuters/FT |
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