Tuesday, August 18, 2009

Reader’s Digest to File for Bankruptcy

Sure Chapter 11 allows for reorganization, and not necessarily the end of the magazine, still it represents change to one of the oldest magazines and the clearest indication that things don't last forever. "The magazine was founded in 1922, summarizing articles published elsewhere, and grew quickly. The company developed other publications, and went public in 1990." The magazine will continue to print, although circulation continues to decline. And while it will come out of bankruptcy a smaller, less costly business, it still faces huge hurdles to remain viable. The world has changed and Reader's Digest must change with it; otherwise, this restructuring is simply one step closer to oblivion.

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