Reader's Digest group exploring restructuring
Reader's Digest Association is exploring restructuring, including a possible bankruptcy filing, according to Bloomberg News.
The news agency reported that RDA had hired law firm Kirkland & Ellis LLP and is considering the option of a pre-arranged bankruptcy. The company has $2.1 billion of debt.
Calls to Reader's Digest were not immediately returned.
Last month, the publishing group announced it was launching two new lifestyle titles. Best You, a healthy living glossy aimed at middle-aged women, and Fresh Home, a more budget-driven quarterly aimed at younger couples and women, hit newsstands in February. The company also recently launched a new publication with the Rev. Rick Warren.
According to its Web site, the company publishes 92 magazines, including 50 editions of Reader's Digest, operates 65 branded Web sites, and sells approximately 68 million books, music and video products worldwide annually.