Reader's Digest Bankrupt...Again

For the second time since August 2009, Reader's Digest Association has filed for Chapter 11 protection.

Please...someone shoot this horse and put it out of its misery already. Here's a funny quote from Chief Executive Bob Guth: "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 America publishing brands, which have shown a new vitality as a result of our transformation efforts, particularly in the digital arena."

Strong? New vitality? Is he saying this with a straight face? I think the captain of the Titanic said "Don't worry, everything's OK. We'll be in port soon."

The WSJ says in their article that RD emerged from its last bankruptcy "on a very healthy and viable basis" according to its bankruptcy judge, but even a lighter debt load couldn't save the company from the pressures on print publishers.

That seems to indicate that the problem with RD is that consumers aren't buying print anymore. This is true to a point, but maybe it's the crappy stuff that RD is printing that the consumer doesn't want, no matter what format they shovel it to the public.

Another one bites the dust at RDA

"Reached over the weekend, (Dan) Lagani was tight-lipped about the circumstances surrounding his exit. Read more: Dan Lagani shown the door.

Once the mushroom clouds dissipate, the only things left on Earth will be cockroaches and Readers' Digest Condensed Books

Watts: Readers' Digest books become part of furniture.

RD Satire

This is a satire, but it's actually a better idea than anything the real leaders of Reader's Digest are coming up with nowadays:
Reader's Digest To Offer New Abridged Version

RDA Dismantling Continues

The Reader's Digest Association has unloaded Weekly Reader. Reports are that Scholastic bought the educational magazine for slightly less than $5 million. Wow! That's chump change. Barely enough to pay bonuses to upper management. But I guess it's one step closer to RDA folding completely.

RDA never really knew what to do with Weekly Reader. They're in a better place now, with a real publisher who actually, you know, makes money. Good luck to them!

So, what's next to go? Taste of Home? Children's Books? The magazine itself? Stay tuned.

RDA Fire Sale?

Publishing giant Meredith has purchased AllRecipes.com from Reader's Digest for $175 million. Meredith previously purchased the magazine Every Day With Rachael Ray from RD. As long as Meredith keeps getting a good deal, they'll continue to pick over the remains of the once-proud company that Lila and DeWitt Wallace created.

Reader's Digest is deep in debt and this infusion of cash will (barely) help make a dent in what they owe. Maybe just the higher-ups can give themselves nice fat bonuses now.

My prediction? Weekly Reader is sold off next, then Taste of Home, then RD's flagship Reader's Digest magazine. Then the current board of directors can close up shop completely, and Lila and DeWitt can spin one last time in their graves.

Even More Layoffs at Reader's Digest

The sinking ship known as Reader's Digest Association has recently cut another 150 jobs worldwide. Thirty of these jobs were at the company’s Greendale, Wisconsin-based Reiman Publications. And that's the part of the company doing well! Ha ha.

In the White Plains, NY office, nearly half of the Children's Books division was sent packing, including a mid-west sales rep. Eliminating sales reps is a clear indication of throwing in the towel. It won't be long now before Children's Books is closed completely. I give it 2-3 months. The rest of the company? Maybe 6.

OK, let's all sit back and watch the ship sink now. Get some popcorn!

Meanwhile, RD is continuing their misguided "We Hear You America" campaign, which grants up to $50,000 to American cities in need. Hello? Your own employees are in need! They haven't gotten a raise in two years. Not to mention the ones laid off. Do you really think it's a good idea to be doling out money you don't have? Here's a tip to the cities that win grants: Cash the check as soon as possible.