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Reader’s Digest has just hit the wall and the creditors have knocked on the door:

The debt-strapped publisher of Reader’s Digest magazine, one of the country’s largest consumer magazines by circulation, has agreed to file for…

… bankruptcy protection with its borrowings cut by 75%, as another failure emerged from the recent wave of media-industry buyouts. The agreement will turn over control of Reader’s Digest Association to the company’s lenders. The lenders, led by J.P. Morgan Chase, also include GE Capital, Aries Management, Merrill Lynch, Eaton Vance, Regiment Capital and DK Partners. Private-equity firm Ripplewood Holdings, which led a $1.6 billion buyout of Reader’s Digest in 2007, will give up its stake, the company said.

Times are hard for one of the oldest subscriber magazines in the world. SMH



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