Reader’s Digest UK has filed an administration proceeding in the UK, it has been announced by the company. As reported by the Guardian today, it follows the failure of a deal to settle its pension fund. RDA today announced:
RDA (Reader’s Digest Association) does not expect the UK administration to have a material impact on its financial performance as the UK business has been operating with negative free cash flow, and without the contemplated restructuring the corporation did not see a clear pathway to profitability in the UK over the next several years.
FT.com reports on the latest developments at Reader’s Digest, whose US arm recently sought bankruptcy protection.
The publication is looking to overhaul its global online activities:
“‘We were the Google News of the 1920s. We were the original aggregator,’ said Jonathan Hills, the newly promoted general manager of readersdigest.com.
“Reader’s Digest is not looking to charge for content online, he said. The new design will instead rely on a business model combining higher-quality advertising units and sales of books, CDs and other products.”
Taking inspiration from the Harper’s Magazine signature feature, Portfolio.com has produced the Reader’s Digest Index, following yesterday’s news that the US magazine is filing for chapter 11 bankruptcy protection.
Here are a few of the most pertinent Reader’s Digest facts, as reported by Portfolio:
Current debt: $1.6 billion.
Amount of interest payment owed today: $27 million.
Number of US employees let go in 2009: 300.
Chapter by which its parent company is filing to protect itself: 11.