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| Reader's Digest in administration | Reader's Digest in administration |
| (about 1 hour later) | |
| Publishing company Reader's Digest, famed for its magazine of the same name, has gone into administration in the UK, putting 117 jobs at risk. | Publishing company Reader's Digest, famed for its magazine of the same name, has gone into administration in the UK, putting 117 jobs at risk. |
| The decision comes after talks between the company's US parent group and the UK Pensions Regulator broke down. | The decision comes after talks between the company's US parent group and the UK Pensions Regulator broke down. |
| The dispute centred on how to pay down a £125m deficit in its UK pension fund. | The dispute centred on how to pay down a £125m deficit in its UK pension fund. |
| Administrators said the UK magazine, which has more than 540,000 subscribers and was founded in 1938, would continue to trade while a buyer was sought. | Administrators said the UK magazine, which has more than 540,000 subscribers and was founded in 1938, would continue to trade while a buyer was sought. |
| Reader's Digest had agreed a deal with the Pension Protection Fund to pay off a small part of the deficit, but the regulator vetoed the agreement. | Reader's Digest had agreed a deal with the Pension Protection Fund to pay off a small part of the deficit, but the regulator vetoed the agreement. |
| As a deal could not be done, the UK publisher said it would not be able to meet its pension obligations and so could not sustain operations. | As a deal could not be done, the UK publisher said it would not be able to meet its pension obligations and so could not sustain operations. |
| Prize draws | Prize draws |
| The first edition of Reader's Digest was published in the US in 1922. | The first edition of Reader's Digest was published in the US in 1922. |
| Having begun as a collection of condensed articles, it started to include original content and is now mostly made up of specially commissioned pieces. | Having begun as a collection of condensed articles, it started to include original content and is now mostly made up of specially commissioned pieces. |
| READER'S DIGEST Concept conceived by a US ex-soldier recovering from wounds suffered during World War IFirst edition published in US in 1922The UK version - its first international edition - appeared in 1938A series of articles printed in 1952 is credited with raising US awareness about connections between smoking and lung cancerPublished in 35 languages, it is available in more than 100 countriesThe UK division employs 117 people and has offices in Canary Wharf, east London, and Swindon, Wiltshire | READER'S DIGEST Concept conceived by a US ex-soldier recovering from wounds suffered during World War IFirst edition published in US in 1922The UK version - its first international edition - appeared in 1938A series of articles printed in 1952 is credited with raising US awareness about connections between smoking and lung cancerPublished in 35 languages, it is available in more than 100 countriesThe UK division employs 117 people and has offices in Canary Wharf, east London, and Swindon, Wiltshire |
| More recently it became known for its prize draws. The administrators said last week's draw took place as scheduled, with the prize fund kept in a trust, but arrangements for future draws were to be reviewed. | More recently it became known for its prize draws. The administrators said last week's draw took place as scheduled, with the prize fund kept in a trust, but arrangements for future draws were to be reviewed. |
| The magazine also became associated with free gifts - from pens and alarm clock radios to encyclopaedias - as it looked to lure new readers. | The magazine also became associated with free gifts - from pens and alarm clock radios to encyclopaedias - as it looked to lure new readers. |
| However, Reader's Digest has failed to shake off its image as a publication favoured by older people and in dentists' and doctors' waiting rooms. | However, Reader's Digest has failed to shake off its image as a publication favoured by older people and in dentists' and doctors' waiting rooms. |
| Despite attempts to modernise, including launching an online edition, its readership in the UK has fallen dramatically from about two million in the 1990s. | Despite attempts to modernise, including launching an online edition, its readership in the UK has fallen dramatically from about two million in the 1990s. |
| "In many cases its readers have been, quite literally, dying off, and nobody has been replacing them," said BBC correspondent Nick Higham. | "In many cases its readers have been, quite literally, dying off, and nobody has been replacing them," said BBC correspondent Nick Higham. |
| "And the underlying business, like lots of other magazines has struggled, as people bought fewer of them as they migrated to the internet. That has made life very difficult." | "And the underlying business, like lots of other magazines has struggled, as people bought fewer of them as they migrated to the internet. That has made life very difficult." |
| The company says Reader's Digest is the largest-selling subscription magazine in the world. The group also sells books, other magazines, recorded music and home videos. | The company says Reader's Digest is the largest-selling subscription magazine in the world. The group also sells books, other magazines, recorded music and home videos. |
| Cash flow | Cash flow |
| The pensions crisis is just the latest problem to hit the publisher. | The pensions crisis is just the latest problem to hit the publisher. |
| The US parent group, Reader's Digest Association (RDA), filed for Chapter 11 bankruptcy protection last year after struggling with interest payments on a $2.2bn (£1.4bn) debt. It now expects to come out of Chapter 11 shortly. | The US parent group, Reader's Digest Association (RDA), filed for Chapter 11 bankruptcy protection last year after struggling with interest payments on a $2.2bn (£1.4bn) debt. It now expects to come out of Chapter 11 shortly. |
| The UK arm had experienced a cash flow problem for some time, a company spokesman said, and this had been exacerbated by higher-than-normal contributions to the severely underfunded pension fund. | The UK arm had experienced a cash flow problem for some time, a company spokesman said, and this had been exacerbated by higher-than-normal contributions to the severely underfunded pension fund. |
| Its more than 100 UK employees are employed in Swindon and Canary Wharf. | Its more than 100 UK employees are employed in Swindon and Canary Wharf. |