Why is Reader’s Digest Filing for Bankruptcy?

Reader’s Digest Association, the publishing company behind Reader’s Digest, announced today that it plans to file for Chapter 11 bankruptcy. According to the press release, the company is currently in debt to the tune of $2.2 billion. Some are suggesting that an overly ambitious 2007 deal with private equity firm Ripplewood Holdings scuttled the company by loading it down with debt.

But what are the real reasons the 87-year-old company is filing for bankruptcy?

• Outraged readers boycott when they discover that ‘sexting‘ is, in fact, made up
• Due to computer glitch, all 8.1 million readers simultaneously win million-dollar sweepstakes
• Wave of shoplifting at supermarket checkout lines cripples circulation
• Was just trying to reexperience the Great Depression, for old times’ sake
• No-good file-sharers leak proprietary jokes, ideas for a healthier breakfast to the Internet
• To better cater to readership’s needs, plans on becoming Twitter-only publication

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