Ailing Reader’s Digest Association is installing its third chief executive in less than five months as it struggles to stem an advertising and circulation slide.
The New York company, which publishes the flagship magazine as well as Every Day with Rachael Ray and Taste of Home, said RDA board member Robert Guth will replace Tom Williams, who held the job since April.
In July, RDA hired bankers Morgan Stanley and Evercore to shop the company, sources said, although RDA has not confirmed this.
Williams’ departure comes just days after ratings firms Standard & Poor’s and Moody’s downgraded the debt on the publishing giant and lowered the outlook from stable to negative.
RDA swung to a secondquarter loss and withdrew its profit forecast for the full year, citing “unexpected challenges” at the Rachael Ray mag.
Williams, RDA’s financial chief, replaced former Condé Nast executive Mary Berner in April, when the former board was tossed out. He didn’t respond to requests for comment.