Reader’s Digest Bankruptcy

Private Company Reader’s Digest Files for Bankruptcy

Since 2005, Reader’s Digest has struggled to overcome heavy losses which finally led the company to file for Chapter 11 bankruptcy this week. Reader’s Digest went private in 2007 under private equity backing from Ripplewood Holdings in a transaction valued at $2.8 billion. The firm aims to restructure its debt through the bankruptcy process but plans to continue operations. Through its Chapter 11 filing, Reader’s Digest can trade senior debt for equity (a total of $1.6 billion) and hopefully regain its financial footing. Here is a news video that gives more background to the possible errors made by Ripplewood Holdings when purchasing Reader’s Digest, most notably overpaying in the buyout boom days.

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Tags: Readers Digest Bankruptcy, Readers Digest Bankruptcy Filing, Readers Digest Chapter 11, Readers Digest Ripplewood Holdings, Ripplewood private equity, buyouts