Will Reader’s Digest remain in its home base in Chappaqua?

October 2, 2009
by Christine Yeres

Speculation has been swirling for months as to whether Reader’s Digest Corporation will continue to lease space at its famous corporate campus from the new owner of that property, Summit Greenfield Partners. Speculation reached a fever pitch when Reader’s Digest filed for Chapter 11 bankruptcy protection on August 17, 2009.

The Chapter 11 bankruptcy filing put the company “in research mode,” explained William Adler, vice president of global communications at Reader’s Digest. “No decisions have been made. We’re doing a good job of due diligence, just seeing what the [commercial rental] market is. In the context of Chapter 11 restructuring, not only is it normal, but it’s required that all contracts be reviewed. The company will go through every contract including leases and assess through this process whether it’s in the interest of the company or not, and then contracts may be challenged or confirmed. And we have thousands of contracts to go through.”

Speaking on behalf of Summit Greenfield Partners, owners of the former Reader’s Digest property, Geoff Thompson of the public relations firm Thompson and Bender, said, “We are making every effort to keep Reader’s Digest as a tenant in the headquarters building they have called home for the last 70 years. Our goal is for the company to remain as a signature tenant at Chappaqua Crossing and as a corporate citizen of the Town of New Castle.”