Reader’s Digest to file for Chapter 11 protection

Reader’s Digest publishers are planning to file for Chapter 11 protection
following emergency talks with lenders to swap part of a $1.6bn (£0.98bn) debt
for ownership of the company.

Reader’s Digest Association Inc, which also produces books and dozens of
other titles, said it has reached an agreement in principle with a majority of
lenders to write off a portion of $1.6bn in loans, according to
Associated Press

A slump in advertising revenue has caused the closure of several high-profile
magazines in the US including Conde Nast’s Portfolio,
Domino and Blender.

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