Reader’s Digest Files for Chapter 11 Bankruptcy
August 17, 2009
Clearly print media is hurting, really hurting.. and in this case Reader’s Digest is the latest to take the bankruptcy route. The company announced that it is filing for Chapter 11 and it is going to enter bankruptcy to hold off creditors.
Chapter 11 is now a very popular term when discussing print media organizations. Many newspapers have already gone that route, and many more will continue to go that route.
There are rumblings in Washington about a “print media bailout” which is a horrific idea to start off with as these print organizations are not going bankrupt due to recession / depression . They are going bankrupt due to the fact that the news stories in their print comes out 3-4 days after it was already discussed and is ‘old news’ on Twitter, Facebook, Blogs, forums and was linked to from the Drudge Report and the main page of Digg.
In essence bailing them out is akin to bailing out a candle-maker company because someone invented electric lights.
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Reader’s Digest Association Inc [RPPLER.UL], publisher of the widely-read Reader’s Digest magazine, said on Monday it would likely file for Chapter 11 bankruptcy for its U.S. businesses to cut its debt load.
The media company, known worldwide for its family-friendly namesake magazine, been trying to slash costs and boost growth since it was taken private in 2007 by an investor group led by Ripplewood Holdings LLC.
The bankruptcy would take the form of a so-called pre-arranged filing, Reader’s Digest said in a statement. A pre-arranged filing comes after a company has already reached deals with its lenders to cut its debt. Full Story here
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It’s just not worth fixing.
Comments
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http://news.india-developers.com/2009/08/reader%e2%80%99s-digest-files-for-chapter-11-bankruptcy/news/ Reader’s Digest Files for Chapter 11 Bankruptcy « IT News
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