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Thursday, February 21, 2013

Reader’s Digest Chapter 11 shows $3.6M debt to Quad/Graphics

This week Reader's Digest’s parent company RDA Holding Co. filed for bankruptcy for the second time in less than four years. By this measure the company plans to cut its $465 million, keep restructuring, and emerge from Chapter 11 within six months.  It publishes 75 publications around the world, including 49 editions of Reader’s Digest. 

RDA’s February-17th bankruptcy petition lists Quad/Graphics Inc. as one of its largest creditors, saying it owes Quad $3.6 million for a trade claim.

In related news, Time Warner Inc. is in talks to divest most of its Time Inc. magazine group in a deal with Meredith Corp., publisher of titles including Better Homes and Gardens and Family Circle, whose readers are mainly women.  In the proposal being discussed, Time Warner would retain its flagship newsweekly Time, along with Sports Illustrated and Fortune, but would transfer most of its other titles, including People, InStyle, and Real Simple.

Given these recent scenarios, magazines printers might be well advised to review their terms of credit with magazine publishers undergoing transition.