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| Version 2 | Version 3 |
|---|---|
| Reader's Digest in administration | Reader's Digest in administration |
| (10 minutes later) | |
| Reader's Digest has gone into administration in the UK, putting 117 jobs at risk. | Reader's Digest has gone into administration in the UK, putting 117 jobs at risk. |
| The decision comes after negotiations between the company's US parent group and the UK Pensions Regulator broke down over its UK pension fund. | |
| The dispute centred on how to fund its £125m pension fund deficit. | The dispute centred on how to fund its £125m pension fund deficit. |
| As a deal could not be done, the UK publisher said it would not be able to meet its pension obligations and would not be able to continue operations. | |
| It had agreed a deal with the Pension Protection Fund to pay off a small part of the deficit, but the regulator vetoed the agreement. | |
| The administrators will now look for a buyer for the UK firm, which was established in 1938. | |
| 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 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 world-famous magazine has just over 500,000 subscribers in the UK. |