Reader's Digest UK files for administration

The publisher of the UK edition of Reader's Digest has gone into administration, putting 117 jobs at

The UK arm had been experiencing a cash flow problem for some time, a company spokesman said, and the problem worsened when it had to direct higher contributions to the severely underfunded pension fund.

Reader's Digest Association (RDA), the US parent company for the magazine, blamed the move on the UK Pensions Regulator.

The UK arm had agreed to resolve its pension fund deficit with the trustees of its pension plan and the Pension Protection Fund. The deal involved injecting £10.9m cash and transferring one-third of the UK business's equity to the pension fund's trustees to fill the £125m deficit.