RDA Holding, which publishes the 91-year-old Reader's Digest magazine has gone bankrupt. It has filed for bankruptcy to slash $ 465 million in debt and focus more on North America as readers shift from print to electronic media.
The company joins the league of iconic but failed businesses which have sought court protection from creditors - Hostess Brands, maker of Twinkies and Wonder Bread, and Eastman Kodak, inventor of Kodachrome and the Instamatic camera.
Reader's Digest had gone public in 1990 and an investor group led by private-equity firm Ripplewood Holdings bought it in 2007 for $1.6 billion. The company also asked for bankruptcy in 2009, citing a drop in ad revenues and the rising debt load.
The Reader’s Digest has more than 2.5 crore readers globally. The company publishes 75 magazines globally including 49 Reader's Digest editions, Taste of Home, the Family Handyman and Birds & Blooms. Reader's Digest now sells more digital editions than it we sells newsstand editions.