Readers Digest files for chapter 11

A staple of the publishing business indicated the severity of the advertising recession lats night as Reader's Digest announced plans for voluntary bankruptcy in New York.

The FT reports that

Equity investors led by Ripplewood Holdings, who announced the $2.4bn acquisition in November 2006, will lose their entire $600m investment.

adding that

advertising revenue from the flagship magazine fell 18.4 per cent last year, and is down another 7.2 per cent in the first six months of this year, according to the Publishers Information Bureau.

The magazine says that the move will not be noticed by its readers,does not expect to lay off any employees or close any of its publications.