Magazine article Folio: the Magazine for Magazine Management

Reader's Digest Association Seeks a New Rx

Magazine article Folio: the Magazine for Magazine Management

Reader's Digest Association Seeks a New Rx

Article excerpt

Slumping revenues, sagging stock prices and stagnant circulations have sent Reader's Digest Association Inc. CEO James Schadt out the door, and many industry observers remain wary about the 75-year-old company's immediate prospects. Schadt, who came to the company in 1994 with a background in marketing most recently at Cadbury Schweppes), resigned last month and was replaced on an interim basis by George Grune, who had held the CEO title for 10 years prior to Schadt's appointment, and kept an office in the campany's headquarters in Pleasantville, New York. Grune will retake his post until a committee chooses Schadt's successor.

"They made no progress at all with Schadt," says Porter Bibb, media-specialist investment banker with Ladenburg, Thalmann & Co. Inc. "This demonstrates the danger of bringing in a nonpublishing pro to take over a publishing property."

Bibb also questions the decision to hand the reins back to Grune, who at age 68 is nine years Schadt's senior: "This was a precipitous move that they hadn't thought out. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.