Wednesday, March 31, 2010

In a Nutshell


Remember Reader's Digest?

Goes along with the Moffat Range and the Studebaker, right?

Wrong again, Little Grasshopper!

According to (yet another august body) the lordly and gold-plated Print Measurement Bureau (PMB to you, Sidney) the current editions of Reader's Digest attract 6.38 MILLION readers per month.

A simple enough question -

Has anyone in living memory heard some one say something like, "Yah, so I read in Reader's Digest the other day that...?"

Oddness.

1 comment:

Norman Farrell said...

I was never a particular fan although they paid me once for a little story for "Laugh With Us."

But, you know how modern business works, right? Somebody putting up little money comes along and buys a property with borrowings or IOUs. Then they squeeze (rationalize!) the operation all they can - slash and burn - trying to draw back enough cash to make payments on the debt. If it works and the new subsidiary survives, they borrow more and do it again with the next target. Businesses grow bigger but ever weaker. Hello there Mr. Asper & Sons.

So, here is the Readers Digest story:

The company, best known for its namesake magazine, had been laboring under almost $2.3 billion in debt before filing for bankruptcy. But under its reorganization, the company was able to cancel hundreds of millions of dollars in debt and restructure other loans to save money.

Holders of Reader's Digest pre-petition senior secured debt will receive almost all of the new common stock. Private equity firm Ripplewood, which bought the company in 2007 for $1.6 billion, has no ownership stake going forward.