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Reader's Digest prepares for bankruptcy protection

Published on 21 Aug 2009 under category: legal

Reader's Digest looks set to file for bankruptcy protection, it has been revealed.

The publisher announced that it will take this action after reaching an agreement with its lenders.

Mary Berner, chief executive of the firm, commented that despite entering Chapter 11 protection, it will be "business as usual" for the group, bankruptcy solicitors may be interested to hear.

She said: "It doesn't affect our employees, it doesn't affect the vast majority of vendors, it doesn't mean we'll do mass layoffs, it doesn't mean we're going to be selling off assets."

It is thought that some of the firm's debts will be restructured into equity, bankruptcy solicitors may be interested to learn.

Last week, fashion brand Escada field for bankruptcy in Munich.

Investors in the company, which has around 180 outlets worldwide, were advised to cash in their loans at a reduced rate, bankruptcy solicitors may be interested to hear.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.