Monday, August 17, 2009

Reader's Digest's Latest Chapter Is 11

Yes, you read that correctly.Image by sono salvo via Flickr

Reader's Digest, founded in 1922 by Lila Bell and DeWitt Wallace, will submit a voluntary pre-packaged Chapter 11 filing in U.S. Bankruptcy Court under a restructuring agreement with its principal lenders.

The bankruptcy move is intended to reduce the publication's debt to $550 million from $2.2 billion. The entire Reader's Digest Association's board of directors, except for CEO Mary Berner, has resigned.

The Pleasantville, N.Y.-based publication's senior lenders include GE Capital, JP Morgan and Bank of America. In 2005, the magazine adopted the slogan: "America in your pocket." Now the magazine's pockets are empty. It would be fitting if the magazine underwent a "condensed" bankruptcy.
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1 comment:

  1. It's the best alternative. Otherwise, they'd be running articles like "Humor in Prison Uniform" and "I Am The Kidney That Joe Sold."