Reader's Digest says China business to remain the same

Aug. 19, 2009 (China Knowledge) - Reader's Digest Association Inc, which owns the best-selling Reader's Digest consumer magazine in the U.S., says its business in China will not be affected by its U.S. headquarters' bankruptcy filing, a representative of the magazine's mainland Chinese publisher said on Tuesday, the official Xinhua News Agency reported.

The magazine's business in China will maintain steady growth, said Shi Yongqiang, general manager of Reader's Digest (Shanghai) Advertising Co Ltd, which publishes Reader's Digest in China, adding that the company will not change any policies for employees, suppliers or partners.

Reader's Digest will continue to develop its Chinese online edition and create new products in China, Shi added.

Reader's Digest Association Monday said it planned to file for bankruptcy for its U.S. businesses as part of a prearranged plan with lenders to cut debt by 75%. The deal, if approved, would reduce the debt to US$550 million from the current US$2.2 billion.

Reader's Digest has about 30 employees in China. When it published an extended edition in China, it sold about 100,000 copies in Beijing, Shanghai and Guangzhou in a single month, according to the report.