Goodbye again, Reader’s Digest

For the second time in less than 4 years, RDA Holding Co., which publishes iconic 91-year-old Reader’s Digest magazine, filed for bankruptcy. Two factors explain why: the changing media landscape and the continuing financial impact of the current owners’ deal-gone-wrong. RDA is attempting to cut further cut its $465 million debt by 80% after being whittled down from the $800 million it absorbed following the ambitious $1.6 billion acquisition deal with previous owners in 2007, the year before the US economy spiraled down. The publisher hopes to recalibrate its business on digital platform rather than on dwindling newsstand sales, a sign of the times venerable Newsweek magazine and a score of other print media business succumbed to earlier.


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