Reader’s digests – the iconic magazine which has been successfully running since 91 years is now facing financial crisis. Since the year of it has arrived they delivered fruitful and useful information to their valuable readers. They never compromise in delivering the quality matter from them.
The major reason outlined for the financial issue faced by Readers digest is, as readers traverse from printed media to electronic media. As we are living in digital world this ultra technology causes several changes in the life style of the people.
More readers go for online reading, as it has numerous advantages. The reader’s digest now filed for bankruptcy to cut $465 million in debt. The company has sought court protection from their creditors. Readers digest was founded by De Witt and Lila Wallance.
Later it was led by the Ripplewood Holdings of private -equity firm in 2007 for $1.6 billion and it was said that there was a debt of $800 million while on purchase. Again the company filed the bankruptcy in august 2009 as they were dropped down in advertisement spending and incurred more debts.