Reader's Digest UK saved after management buyout

<p>Reader&#39;s Digest UK has been saved by a management buyout worth &pound;13m led by managing director Chris Spratling (<em>pictured</em>). The deal secures the future of the business which went into administration in February 2010 as a result of significant UK pension liabilities. Reader&#39;s Digest Association, Inc has agreed to allow the UK operations to publish under the Reader&#39;s Digest brand through a licence agreement.</p><p>Spratling said: &quot;We are delighted to have completed the buyout today and in doing so to have secured the future of a tremendously exciting business. We are now fully funded and debt free and can now focus on bringing our customers all the services and products that they have such huge affection for.&quot; </p><p>He added: &quot;The iconic magazine and prize draw will continue but it should be remembered that these are just a part of a much larger business. There are tremendous opportunities for our businesses in financial services, books and healthcare and significant plans to expand all aspects of the Reader&#39;s Digest business in the UK.&quot;<br /><br />Phillip Sykes, head of corporate advisory services at administrator Moore Stephens, said: &quot;It&#39;s been a stressful time for everyone employed in the business so I&#39;m delighted with the outcome. We&#39;ve had tremendous support both from the staff of RDA and also the US parent, The Reader&#39;s Digest Association Inc, who provided an extension of the group licensing arrangements to allow the company to continue trading through the administration.&quot; <br /><br />The management buyout has been backed by Better Capital.</p>