NEW YORK — The publisher of Reader’s Digest, the country’s most popular general-interest magazine, said Monday it will file for Chapter 11 protection with a plan to swap a portion of its debt for ownership of the company. Reader’s Digest Association, which also markets books and publishes dozens of other magazines and websites, said it has reached an agreement in principle with a majority of lenders to erase a portion of $1.6 billion in senior secured notes. The lenders will get ownership in return.
Already, this year’s advertising declines have prompted the shuttering of several high-profile magazines, including Conde Nast’s Portfolio, Domino and Blender.
Reader’s Digest chief executive Mary Berner insisted, though, that the company’s U.S. magazines remain strong and blamed underperforming properties the company agreed to sell off last year.
