London, Feb 19: Popular magazine Reader’s Digest has filed for bankruptcy for the second time in four years, following declining print sales due to a multi-million dollar debt.
According to Bob Guth, chief executive of RDA Holdings, which is the magazine’s parent company, Reader’s Digest has listed 1.1 billion dollars of assets and 1.2 billion dollars in liabilities in a bankruptcy filing in New York, the Telegraph reports.
Guth said the company intended to recover from its second bankruptcy in the next six months with just 100 million dollars in debt, after a group of bondholders agreed to convert their debt into equity.
Guth said that the company would use the bankruptcy to finalise an agreement with its creditors to reduce its debt and to focus on growing the online sales of its 75 magazines.
Guth further stated that although they have confidence in the future of the business due the success of the ongoing operational transformation, financially the company is still quite weak.
RDA first filed for bankruptcy in 2009, just two years after American private equity firm Ripplewood bought the publisher for 1.7 billion dollars. (ANI)