Reader's Digest UK bought out of administration

Reader's Digest in the UK has been bought out of administration by Better Capital, well-known private equity veteran Jon Moulton's investment firm.

The 72-year-old British edition went into administration in February after its US parent was unable to support it following a pension fund crisis.

Better Capital said it had backed a management buy-out in a £13m deal that secures the future of the business and the jobs of the 100 people who work for the company.

Some employees had already been made redundant since the company went into administration, while others had been transferred to the US parent group, the administrator Philip Sykes told the BBC.

The US parent has agreed to let the company publish using the Reader's Digest brand under licence.

"It's rare to have an opportunity to back a dynamic management team to run a business with the heritage and brand strength of Reader's Digest," said Mark Aldridge, chief executive of Better Capital.

He said the new management team envisaged no "fundamental changes" to the business.

"With greater investment and expansion through the internet," he said, the magazine could reach a much wider audience.

Posted at 07:45PM Apr 09, 2010 by Kelly Board in Insolvency  |  Comments[0]