Potential buyers emerge for crisis-torn Reader’s Digest

Administrators for Reader’s Digest have announced there has been “significant interest” from potential buyers.

Last month, Reader’s Digest filed for administration in the UK, putting more than 100 jobs under threat.

The decision by the publisher of the renowned magazine came after it failed to achieve the required support from the UK Pensions Regulator for a pension scheme funding deal.

As a result, the publisher said it could not meet its pension obligations.

Reader’s Digest Association, its American parent group, filed for Chapter 11 bankruptcy protection last year after struggling with interest payments.

The UK division has experienced cash flow problems for some time now but administrators said the company would continue to trade for the short-term while it sought potential buyers.

Administrator Philip Sykes said: “While we are reasonably optimistic, it is difficult to predict a timescale, but negotiations with interested parties have begun.“

Reader’s Digest has a workforce of more than 100 staff in the UK and has a circulation of 465,028, with offices in Canary Wharf in London, and Swindon in Wiltshire.

Its history dates back to the late 1930s.

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