Better Capital has sold Reader's Digest for the nominal sum of just £1 after deciding that the company has not justified the time and effort put into it.
The investment group and distressed business specialists bought Reader's Digest out of administration back in 2010 for the sum of £14 million. After implementing a turnaround plan, which included the investment of a further £9 million into the business, Jon Moulton's business admitted defeat when the firm collapsed into a company voluntary arrangement (CVA) in early 2013.
The CVA allowed the magazine to continue trading, but despite a large cut in jobs and calling a halt to unprofitable marketing activities, Better Capital still didn't manage to get the magazine back on track.
The firm has now sold the publication to Mike Luckwell, who first approached the company about a potential acquisition last year. He has invested in a number of successful entertainment firms, including the company behind Bob the Builder, HIT Entertainments, and aims to expand Reader's Digest.
Reports suggest that Luckwell's expansion plans revolve primarily around targeting the over-50s market, which represents more than a third of the UK population. Other companies, such as Saga, have already made a success of targeting products and entertainment at this section of society, and Luckwell wants to try his luck.
Reader's Digest has been in publication for over 70 years. However, its circulation figures have fallen dramatically since its heyday when it had print runs in the millions. When Better Capital first took control around four years ago, the publication had a UK circulation of around 400,000, but this has since dropped to closer to 200,000 in recent months. 
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