Embattled US parent Reader’s Digest Association (RDA) said it was no longer able to support the UK title after a rescue deal for the firm’s under-funded pension scheme fell through.
Administrators Moore Stephens confirmed they were seeking a buyer for the title – which has a circulation of 541,282 in the UK – and would continue publishing the magazine in the meantime.
Last week’s prize draw would also be paid out to winners, as the Reader’s Digest prize fund is held in a trust, according to the administrator.
But the company said it was too early to comment on the future of the magazine’s 117 UK staff.
The British edition has a history dating back to 1938. It has offices in Canary Wharf, east London, and Swindon, Wiltshire.
The title’s failure means its UK pension fund, which has 1,600 members, may have to be bailed out by the Pension Protection Fund (PPF) lifeboat.
The PPF pays out in full for members currently drawing a pension, but caps payment for those who are yet to retire at 90%, with a ceiling of around £28,000.
This would leave around 32, or 2%, of members of the UK Reader’s Digest Scheme out of pocket.
Reader’s Digest UK called in administrators after it failed to secure regulatory backing for a funding deal for its pension scheme, which has a £125 million shortfall. The group stressed the UK administration will not impact its other titles across the world.
Source: Press Association