RDA's Reader's Digest Association Inc. filed for Chapter 11 protection in 2009 in the midst of a recession and the drop in advertising and circulation. The company emerged from bankruptcy in early 2010 with less debt, but has still struggled.
Robert E. Guth, RDA's president and CEO, said a "complex transformation" begun 18 months ago under new senior managers "has resulted in a more streamlined, more focused, and more profitable business, but we have unfortunately been unable to align our debt levels correspondingly."
Besides Reader's Digest, the company publishes a food publication, Taste of Home, and has 21 brands globally.
The bankruptcy filing in the Southern District of New York covers the company's U.S. businesses. It said its international operations are not part of the filing. It said it is still looking for agreements to sell and license its international businesses, and expects to finalize some deals in coming weeks.
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