'Significant interest' in buying Reader's Digest UK

The administrators of Reader’s Digest UK have said there was “significant interest” from potential buyers of the business and confirmed the magazine would continue to be published until at least April.

The 72-year-old British edition of the magazine collapsed into administration earlier this month when its embattled US parent Reader’s Digest Association (RDA) said it was no longer able to support it following a crisis in its pension fund.

The administrator Philip Sykes, of Moore Stephens, said there was “significant interest” as he sought a buyer for the business.

Mr Sykes said: “While we are reasonably optimistic, it is difficult to predict a timescale, but negotiations with interested parties have begun.”

The administrators said the April issue of Reader’s Digest would be published and RDA’s sales team was marketing advertising space to media agencies for the May issue.

They said future campaigns were being reviewed and prize draws were continuing.

Reader’s Digest employs 117 staff in the UK and has a circulation of 465,028.

The British edition has a history dating back to 1938. It has offices in Canary Wharf, east London, and Swindon, Wiltshire.

Reader’s Digest UK called in administrators after it failed to secure regulatory backing for a funding deal for its pension scheme, which has a £125 million shortfall.

The UK Pensions Regulator ruled against proposals that would have seen the US parent inject £10.9 million as a lump sum and one third of the equity of the UK business into the pension fund.

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