Reader’s Digest Files for Chapter 11

MANHATTAN (CN ) - Reader's Digest has filed for bankruptcy, listing $2.2 billion in assets and $3.4 billion in liabilities. Circulation of the magazine - said to have been President Ronald Reagan's favorite reading material - dropped from 17 million at its peak in the 1970s to about 8 million last year.

The bankruptcy plan apparently will give lenders control of the company. Ripplewood Holdings, which bought Reader's Digest in 2007, is expected to relinquish its ownership. The bankruptcy filing is not expected to affect the magazine's day to day operations

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