The Crotchet’s Corner

My perspective about all things inconsequential

Chapter 11 … yet one more…

Over the past year or so, thanks to the global downturn, some major companies such as General Motors, Chrysler, Lehman Brothers, Nortel Networks (one of the leading sponsors of the 2012 London Olympics), and Trump Entertainment, sought Chapter 11 bankruptcy protection.

With debt of US$ 1.6 billion, Reader’s Digest, publisher of the monthly magazine which claims the largest circulation in the world, has also filed for bankruptcy protection in agreement with its major lenders. The filing applies only to the U.S. businesses and excludes operations in other countries.

Readers Digest

With the spread of the internet and 24-hour television coverage, reading habits have changed, and magazines such as the Reader’s Digest will struggle to sustain circulation, readership, and, crucially, advertising revenue.

For a slightly older generation, it is sad to see an iconic brand such as the Reader’s Digest face such hard times.

It’s a tough world.

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August 18, 2009 - Posted by | About this and that | , ,

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