One of the world’s leading magazine, Reader’s Digest filed for bankruptcy to cut their $465 Million of dept and focus on North American operations as consumers shift from print to electronic media.
The company is the latest iconic international business that sought court protection from creditors after major brands such as Hostess Brands Inc., maker of Twinkies and Wonder Bread, and Eastman Kodak Co., filed for bankruptcy.
The Reader’s Digest company were founded by DeWitt and Lila Wallace, they went public last 1990, some of their major investor were a group led by private-equity firm Ripplewood Holdings LLC last 2007 for an estimated $1.6 Billion and (–foul word(s) removed–)umption of about $800 Million in debt.
The company have already filed bankruptcy last 2009 citing a drop in advertising spending and the debt as the main reasons. On their recent filing of bankruptcy, Reader’s Digest CEO Robert Guth cited that they are on the process of simplifying and rationalizing their international business by licensing their local markets to third parties, and to other publishers.
bankruptcy is a legal procedure to be file if you want to help you out on your debt. Good decision making to file for bankruptcy in Reader’s Digest.