Magazine Publishers in New York on the verge of bankruptcy

Headline - Readers Diggest Association and six affiliated companies alleging that the company publishing the magazine being the verge of bankruptcy. The condition is caused by the proliferation of digital media being the main rival print media business.


Chief Executive Readers Digest, Bob Guth, said the cause of bankruptcy due to lack of advertising that goes. However, more than 70 percent of shareholders agreed to convert Rp 4, 5 trillion of debt into shares and can be completed within six months. These efforts succeeded in reducing the deficit amounted to Rp1, 01 trillion.

"Expected to be reducing debt significantly. We continue to fix the business back, by focusing on the issuance of the strongest brands in North America, and have demonstrated a new vitality as a result of our transformation efforts, particularly in digital media," said Bob Guth, quoted from page Wall Street Journal, Monday, February 18, 2013.

To deal with the threat of bankruptcy, Bob Guth admitted that the company's Allrecipes.com sells for U.S. $ 175 million or about Rp1, 6 trillion to the MDP Meredith Corp. last year, and released to the Weekly Reader Scholastic Corp.

Of course, although since 2010 the graphics is not good enough, the company that was founded 91 years ago and based in New York, the United States, can reduce the company's debt to be lower.

Sources: http://dunia.news.viva.co.id/news/read/391397