Popular magazine publication Reader’s Digest has filed for a pre-arranged Chapter 11 bankruptcy.
According to the Wall Street Journal, Reader’s Digest ?reached an agreement with its lenders on a restructuring plan that it will likely complete under a prepackaged bankruptcy filing in order to reduce its debt.?
Like many other print publications, Reader’s Digest suffers from low profit margins and high operation costs. The company may inevitably go fully digital sometime in the future if they are not able to improve their operations.
But in the meantime, the company will ?continue to operate normally throughout the restructuring process.?
Reader’s Digest was co-founded in 1922 by Lila Bell Wallace and DeWitt Wallace. The magazine has a circulation of about 8.1 million copies in the U.S. and has about 38 million readers.