Reader’s Digest Association Inc., publisher of Reader’s Digest magazine and other publications and websites, has announced it will “likely file for Chapter 11 bankruptcy for its U.S. businesses to cut its debt load,” The Globe and Mail reports.
The filing will not affect the company’s operations in Canada or other parts of the world, it will only apply to RD’s U.S. businesses.
Reader’s Digest president and chief executive Mary Berner said in a statement:
“The company has strong brands and products, a leadership position in many markets around the world and a solid plan for the future. Restructuring our debt will enable us to have the financial flexibility to move ahead with our growth and transformational initiatives.”