Readers Digest: Latest Publication to File for Bankruptcy Protection

The publisher of Reader's Digest, the well-known pocket-sized publication, is planning to file for Chapter 11 bankruptcy protection in an effort to reduce its debt by 75 percent.

The publisher is claiming that some of its debt stems from a pre-arranged agreement with an investor group led by Ripplewood Holdings, which bought Reader's Digest in March of 2007and allegedly accumulated debt before the advertising market slump.

Although the company announced in January that it plans to lay off 8 percent of the company's employees, Mary Berner, CEO of Digest, said there are no plans as of right now to lay off any employees.  Berner also said there are "no anticipated business closings, no anticipated effect on our employees, our freelancers, our vendors, or our partners."

Reader's Digest isn't the only publication facing hard times in the current economy.  Many other publishing companies are filing for bankruptcy in an effort to keep their publications afloat, including the Journal Register Company, Philadelphia Newspapers LLC, and the Tribune Co.

If you are interested in learning more about the Chapter 11 bankruptcy process, click here to contact a bankruptcy lawyer in your area.