CHAPPAQUA, N.Y. – For the second time in the last four years, RDA Holding Co. parent company of the publisher of the 91-year old Reader’s Digest magazine, has filed for bankruptcy.
The company first filed bankruptcy in 2009, when it moved out of its former headquarters campus in Chappaqua, which has now become the controversial Chappaqua Crossing property.
This second bankruptcy, filed as a Chapter 11, was made to cut $465 million in debt and focus on North American operations as the industry continues to shift from print media to electronic media. The company expects to have about $100 million in debt when it exits Chapter 11, about an 80 percent reduction.
According to RDA Holding's Chief Executive Officer Robert Guth, the company sold more digital editions in December than they did on newsstand editions.
“The Chapter 11 process, which will facilitate a significant debt reduction, will enable us to continue to redefine our business by focusing our resources on our strong North American publishing brands, which have shown a new vitality as a result of our transformation efforts, particularly in the digital arena,” Guth said in a company statement.