BLP advises on Reader’s Digest administration and sale
Berwin Leighton Paisner LLP (BLP) has advised joint administrators Phillip Sykes, William Beach and Jeremy Willmont from Moore Stephens LLP on the sale of business of The Reader’s Digest Association Limited (in administration), to a bidder funded by the AIM listed private equity fund Better Capital.
The fund, owned by venture capitalist Jon Moulton, is expected to invest £13m in Reader’s Digest UK after the magazine company failed to secure financial support for its pension fund and filed for administration earlier this year. The investment by Better Capital will rescue 100 jobs and ensure the continued distribution of the household magazine title to its 500,000 monthly subscribers. This deal is the latest for BLP’s Restructuring & Insolvency team, who also recently advised on the administration and sale of over 60 Regents Inns’ bars, restaurants and clubs, helping to save 2000 jobs.
The BLP team was led by partner Ben Larkin and senior associate Imogen Bell, assisted by associates Ian Benjamin, Marc Trottier and Sarah Archer. Support was also provided by Katherine Ollerhead (Commercial Contracts), Norman Russell (Pensions), Susan O’Riordan and Matthew Ramsey (Employment), Marilyn McKeever (Trusts and Personal Tax), Barry Gross (Real Estate), Charles Goddard and Katherine Durkacz (Corporate Tax) and Oliver Glynn-Jones (Litigation and Dispute Resolution).
Partner Ben Larkin said, “We are delighted to have advised Moore Stephens on this key transaction to rescue Reader’s Digest from administration. The magazine is a household title that would have been missed by many had this sale not been successful. This deal demonstrates BLP’s continued success in achieving favourable outcomes for our clients and highlights our involvement in some of the most talked-about transactions in the market place.”
Olswang LLP advised the purchaser and Kirkland & Ellis LLP advised the Company’s parent, The Reader’s Digest Association Inc.
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