Reader’s Digest aims to sell off a unit
NEW YORK - The bankrupt Reader’s Digest Association Inc. is seeking approval to sell its CompassLearning business to a bidder formed by Marlin Equity II and WRC Media Inc.
The purchase price would be $43.2 million, including assumed liabilities, and the company acquiring the unit would be called CompassLearning Acquisition Corp.
The educational unit makes digital materials such as interactive state and national standards-based curriculum and reporting systems for libraries and schools. It is a wholly owned subsidiary of WRC Media, which is owned by Reader’s Digest.
The magazine publisher said it will proceed with the relocation of its operations from Chappaqua, N.Y., to New York City and nearby White Plains, N.Y., after its current landlord withdrew objections to the move, which is designed to cut costs. The parties announced the accord yesterday during a hearing before a bankruptcy judge in White Plains.
Reader’s Digest filed for Chapter 11 protection in August.