Reader's Digest Magazine is an issue that probably everyone knows and loves to read, given the great measure of content in the magazine. This 91 year old magazine is now facing a financial crunch with a heavy debt on its shoulders. The RDA Holding, publisher of RD has filed for bankruptcy which will allow a $465 million cut in the debts. Apart from this they also plan to shift their focus to the North American operations while cutting down on the print media and making it electronic as e-magazines.

This is not the first company to have been facing a financial crunch. A list of very popular companies earlier too have sought protection from the court from the creditors. RD would now join the likes of Eastman Kodak, the inventor of Instamatic camera, Kodachrome, and the maker Twinkies and Wonder Bread, Hostess Brands.

Made public in 1990, the magazine was founded by DeWitt and Lila Wallace. Ripplewood Holdings purchased the private-equity firm in 2007 for $1.6 Billion when it had a debt of $800 million. They too filed a bankruptcy in August 2009 after a drop in advertising spending and the debt load incurred after it took the helm into its hands.

(AW- Anil)