Reader's Digest Association, Pleasantville, N.Y., will lower the rate base of Reader's Digest by 10% to 20%,Chairman-CEO Thomas O. Ryder said. The move, part of a larger cost-saving restructuring plan, was expected. Other cost saving measures include: scaling back RDA's adult trade book business and children's publishing efforts; curtailing some video and music business in non-U.S. markets; and discontinuing RDA's Today's Best Nonfiction book series. RDA will also auction its corporate art collection and sell real estate holdings in London and New York. Mr. Ryder said the company also will acquire two new businesses: the Woodworking Group of Rodale Press, which includes flagship American Woodworker, and Good Catalog Co., an Oregon-based company targeting young affluent consumers through nine catalogs. Good Catalog sales were put at $30 million a year. Terms were not disclosed for either acquisition.
Copyright September 1998, Crain Communications Inc.