Jon Moulton’s Better Capital to inject a further £3m into Reader’s Digest

Steve Dinneen
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JON Moulton will plough a further £3m into Reader’s Digest after his white-knight £13m bid saved the iconic magazine from bankruptcy a year ago.

He told City A.M. yesterday the firm is undergoing radical changes and the cash injection will help it realise its ambitions of turning around its fortunes.

He said: “The changes to the business are far-reaching and this doesn’t happen without investment.

“This is probably the last injection in the short-term but after that, who knows?

“The business is debt free and everything is being funded by Better Capital.”

The investment takes Better’s total expenditure on the business to around £23m.

The UK arm of the 87-year-old publisher filed for administration in February 2010, two weeks after the Pensions Regulator rejected a plan to plug the £125m hole in its savings fund.

Management at the company took a 35 per cent stake in the firm as part of the deal.

Reader’s Digest launched in the US in 1922. It made its name by taking on tobacco firms with a series of hard-hitting articles on lung cancer.