Skip to comments.Reader's Digest Publisher Succumbs to Bankruptcy Again
Posted on 02/18/2013 7:06:44 AM PST by ZakeetEdited on 02/18/2013 7:09:13 AM PST by Admin Moderator. [history]
In a bid to slash $465 million of debt, Readerís Digest parent RDA Holding Co. filed for Chapter 11 bankruptcy over the weekend for the second time in less than four years.
The media company said it has reached a deal with its largest creditor, Wells Fargo (WFC), and more than 70% of its secured noteholders on a financial restructuring plan that includes the Chapter 11 filing.
(Excerpt) Read more at foxbusiness.com ...
In for still more "complex transformation"
No more free bus rides to work in Chappaqua, I’m guessing.
"If you eliminate the third, fifth, and sixth letters, then it's 'Red's Digest', comrade."
“I am Joe’s incompetent CEO”
That’s the Reader’s Digest version.........
Did I read that in recent years Reader’s Digest has morphed into the most worthless piece of Marxist trash? If so,I say bravo!
At some point around 2003, I was sitting there and attempting to read a Reader’s Digest...and here was a global warming story treated as absolute truth. Later in the same copy....a story over people with lack of health care.
The thing is....people that generally read Reader’s Digest are fairly naive and never question the stories in it. I put down the magazine. I think around 2008, at some Dentist office....I picked up a copy and saw the same type of material.
It’s basically drafted over in the past ten years to some trash document. The same issue came up with National Geographic. I think it’s mostly all bogus science and has little to do with geography. Both magazines are suffering from lack of readers and it doesn’t surprise me over their financial problems.
I gave up on the National Geographic three years ago. I had been a subscriber since 1975, and have a complete collection that goes back to about 1950. The old ones are still worth reading and browsing.
I subscribed to Readers Digest years ago.
Was the best water-closet read.
The short ‘real-life’ stories and the one liner quotes all over the magazine.
Picked up one recently at the Dentist office and found none of the charm of the magazine from years ago.
Same with Yankee Magazine.
I dropped Reader’s Digest a few years ago after they started printing what amounts to love letters to the Obamas. They pestered me with offers of nearly free magazines for a year after that in hopes I would renew my subscription.
For decades it was a family tradition to give subscriptions of RD and NatGeo for Christmas presents. That ended at least 10 or more years ago by request of all the recipients. All at about the same time agreed that both had turned into nothing more than trite rags of liberalism.
It was a shame. The condensed books were good reads back in the day. You could settle in for an evening by the fire and read a couple of good stories in one setting.
The RD reporting got worse and worse and more slanted all the time. Then it just got repetitive.
Popular Mechanics did about the same and started trying to be some kind of social reform media instead of a handy man’s how to. It got cancelled as well. Popular Science got axed by us way before that for the same reason.
Good riddance. RD was just another liberal rag that fell from the truth a few decades ago. I grew up in the 60’s and 70’s with it and thought it was great but by 1990 I canceled my subscription as it was so left-leaning it nearly tore the left legs off my end table.
I subscribed for a few years of light reading. Most stories were fair and balanced, then the shift to left occurred and I escaped their stupidity marketing by unsubscibing in the early 90s.
Apparently we ALL were their readership, their demographics.
Wonder if they figured out why we ALL left....lol
now that it skews left:
Humor in Uninformed
Life in These Union States
Lefter, the Best Medicine
In 1945, it published Friedrich A. von Hayek's The Road to Serfdom in serial form,
introducing this classic to millions of readers.
Didn’t they do away with that years ago ???
Content has nothing to do with their demise. All magazines are dying. The ones holding on the longest are those with the narrowest focus, but they will eventually die, too.
I have a copy of the August 1937 issue of Reader’s Digest. The subhead is “Articles of Lasting Interest,” and you know what? All the articles are still pretty darned interesting.
Back then it was a dumbed-down version of important magazines. Today it’s a dumbed-down version of TV.
I gave up after global warming and all the advertisements for the LDS church. If I remember, it was tough to stop. They automatically renew and bill you. I got the dunning letters to stop after I requested they show me proof that I renewed.
After they crapped all over their main audience pimping homosexuality, racism, “People” style crap, etc., and quit publishing quality material they were destined for bankruptcy.
I was a Reader’s Digest fan for many years. Wouldn’t take it for free now.
The magazine was started by DeWitt Wallace, while recovering from shrapnel wounds received in World War I. Wallace had the idea to gather a sampling of favorite articles on many subjects from various monthly magazines, sometimes condensing and rewriting them, and to combine them into one magazine. Since its inception, Reader’s Digest has maintained a conservative and anti-communist perspective on political and social issues. The Wallaces initially hoped the journal could provide $5,000 of net income. Mr. Wallaces continuing correct assessment of what the potential mass-market audience wanted to read led to rapid growth. By 1929, the magazine had 290,000 subscribers and had a gross income of $900,000 a year.
The magazine’s parent company, The Reader’s Digest Association, Inc. (RDA), became a publicly traded corporation in 1990. As of 2010 RDA has reported a net loss each year since 2005. In March 2007, Ripplewood Holdings LLC led a consortium of private equity investors who bought the company through a leveraged buy-out for US$2.8 billion, financed primarily by the issuance of US$2.2 billion of debt. Ripplewood invested $275 million of its own money, and had partners including Rothschild Bank of Zurich and GoldenTree Asset Management of New York. The private equity deal tripled the association’s interest payments, to $148 million a year.
On 24 August 2009 RDA announced it had filed with the U.S. Bankruptcy court a pre-arranged Chapter 11 bankruptcy, in order to continue operations, and to restructure the $2.2 billion debt undertaken by the leveraged buy-out transaction. The company emerged from bankruptcy with the lenders exchanging debt for equity, and Ripplewood’s entire equity investment was extinguished.
In 2001, 32 states attorneys general reached agreements with the company and other sweepstakes operators to settle allegations that they tricked the elderly into buying products because they were a “guaranteed winner” of a lottery. The settlement required the companies to expand the type size of notices in the packaging that no purchase is necessary to play the sweepstakes
Reader’s Digest in the UK has been criticised by the Trading Standards Institute for preying on the elderly and vulnerable with misleading bulk mailings that claim the recipient is guaranteed a large cash prize and advising them not to discuss this with anyone else.
So Colonel Flagg was right after all.
“My favorite feature is It Pays To Enrich Your Word Power.
Probably. Oh well.
I used to love the RD.I knew the world was over years ago but when they shut down the pulp mills at almost the same time our only bookstore( besides second hand) Borders...uh oh or was int Barnes and Noble?? anyway, they went under, and closed it’s doors.
One of my fav past times gone, reading newspapers,mags and books while sipping a cuppa Joe at some obscure local hang out or yes, the bookstore.
Readers Diget was fun as my grandpa( a doc) subscribed to it so when I was doing office work with grams( forced child labor:P) the occasional breaks were filled with reading the stories or jokes aloud.
“Life in These United States.”
I called and let them know exactly why I was cancelling.
Pretty accurate summation.
You did omit the mention of half a dozen hard card advertisement inserts which make it impossible to thumb through the magazine.
Also, the article layouts, graphics and fonts are indistinguishable from the ads.
Then there is the obligatory four page, micro print legal announcement/disclaimer for some new medical product which someone hopes will prevent a shakedown by tort lawyers.
This month’s issue (March 2013) had three, count em’ three, items in Humor in Uniform.
Lastly, the moral values of their editors seem to have been formed by watching MTV & reading “Self” or “US” magazine.
RD went off the tracks when they started adding full color, full-page ads and slick formatting, and slimming down. I had a collection of the plump, newsy gems of the fifties, and I read every word in every one of them, even the stories I had no real interest in. If RD croaks this year, it will be a merciful, long-delayed croaking. Good riddance.
leftis = financial catastrophy.
TV news ad revenue
leftis = financial catastrophy.
TV news ad revenue
Rats, I was counting on an abridged version of Dan Brown’s upcoming masterpiece “Inferno”. (Abridged to 2 pages, that is.)
Those free bus rides were an incredibly clever part of the employment package. RD was by far the best of local employment back in the day.
I know how you ended up with that subscription. There was a copy of the Feb. issue in yesterday’s mail, complete with a bill. This after I insisted they remove my name from the mailing list last year!
Needless to say, I called them immediately and got their (Indian) call center, complete with a woman who had no idea what to do.
Before the call was connected I had been asked if I was willing to take a brief survey.
i let them have it. I also requested a call from a supervisor whose native language is English. I’m still waiting.