Reader's Digest Australia says it will not be affected by the restructure of the US publisher of Reader's Digest, which will file for bankruptcy protection.
The publisher of the US Reader's Digest, the most popular US general interest magazine, said it planned to swap a portion of its debt for ownership of the company, as reported in the Sydney Morning Herald.
The planned bankruptcy protection filing comes amid declining circulation, an industry-wide advertising slump and large debts.
In a posting on their website, Managing Director for Reader’s Digest Australia Pty Ltd, Walter Beyleveldt, confirmed today that the announced US RDA restructure has no impact on the Australian business.
“It will remain ‘business as usual’ for the Australian company and nothing will change for our employees, vendors or business partners.
“In Australia, Reader’s Digest remains the second highest circulating monthly magazine in the country; Handyman magazine circulation has grown by 4.8 per cent and its readership increased by 15.8 per cent.”
“The company’s advertising revenue grew by seven per cent in FY09 over prior years, despite a downturn in general advertising revenues in the magazine sector.
“Our Australian business continues to be healthy and profitable and is unaffected by any financial restructuring taking place in the US.”