The Indian operations of Reader’s Digest, will not be impacted by the bankruptcy filing by Reader’s Digest Association Inc in the United States. The arrangement, which has been agreed with lenders, comes as it struggles in a weak advertising market.
“There will be no impact on Reader’s Digest India. We will continue to function normally,” said Ashish Bagga, CEO, Reader’s Digest India. Indian Reader’s Digest is published by Living Media India, also the publishers of India Today magazine, under a licence granted by the Reader’s Digest Association, Inc, proprietor of the Reader’s Digest trademark.
The Reader’s Digest Inc has made it clear that filing for bankruptcy in the US will apply only at its US businesses. Operations elsewhere will not be affected, while the US edition will continue to be published. Chapter 11 gives firms time to juggle their finances while continuing trade.