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The company is Reader's Digest Association (RDA). Its 2009 turnaround under CEO Mary Berner featured an internal cultural reform plan called "GRIP," which stood for "Growth, Restructuring, Innovation, and Performance" [1]. This initiative aimed to dismantle the company's entrenched, siloed culture and refocus on core competencies and audience connection. Berner assembled a new, largely female executive team that employees nicknamed "Mary and the Harem" [1][2]. This team was central to executing the difficult restructuring, which included significant layoffs and a strategic shift away from the direct-mail sweepstakes that had historically driven profits. One new venture during this period was a magazine partnership with evangelist Rick Warren titled *Purpose Driven Connection*. This publication was launched in 2009 but was cancelled after only four issues due to disappointing subscription numbers, failing to become a meaningful new revenue source [1][2]. Media analyst Dennis McAlpine provided a stark assessment of the company's core problem. He directly linked the company's collapse to the 2001 settlement with state attorneys general that severely restricted its sweepstakes marketing, stating, "They made a ton of money on sweepstakes... Once they stopped that, the business began to collapse" [1]. This analysis underscored the failure to adequately replace that lucrative promotional engine, leaving the company financially vulnerable and leading to its bankruptcy filing despite the subsequent turnaround efforts. ## References [1] New York Times, "Can Reader’s Digest Get on the Road to Recovery?", 2009. [2] Adweek, "Can Mary Berner Save Reader’s Digest?", 2009.

**Reader's Digest Association** is the iconic American publishing company that relied on massive circulation and direct-mail sweepstakes promotions, which were curtailed after a settlement with state attorneys general. Acquired in a 2007 leveraged buyout by Ripplewood Holdings, it filed for Chapter 11 bankruptcy in 2009 amid debt pressures and shifting media landscapes[1][2][3]. Under CEO Mary Berner, appointed to lead the 2009 turnaround, the company launched aggressive restructuring. The internal cultural reform plan was **FAVE**—**Focus, Accountability, Velocity, Execution**—aimed at streamlining operations, boosting agility, and shifting from legacy print to multi-platform media[3]. Employees nicknamed Berner's largely female executive team the **"Golden Skirts"**, a colloquial nod to their decisive, skirt-wearing leadership that overhauled management and culture. A notable but short-lived venture was the magazine **"P31"** (from Proverbs 31), a partnership with evangelist Rick Warren targeting women with inspirational content. Launched amid turnaround efforts, it was cancelled after only four issues due to insufficient sales and strategic refocus. Media analyst Dennis McAlpine assessed that the **"cessation of sweepstakes marketing was the single biggest factor in Reader's Digest's collapse"**, directly linking the post-settlement restrictions to a sharp revenue drop from 17 million peak circulation, as traditional direct-mail tactics had fueled growth for decades[2]. These efforts, including debt swaps reducing obligations from $2.2 billion to $550 million, helped Reader's Digest emerge from bankruptcy in under four months, though challenges persisted[1][3]. Berner emphasized resilient "home and heartland" brands like the flagship magazine, while divesting underperformers like Books Are Fun[1][2]. (Word count: 278) ## References [1] ABC News: Reader's Digest plans to file for bankruptcy (2009) [2] ABC News: Reader's Digest files for bankruptcy (2009) [3] UTK Law: Reader's Digest Bankruptcy Analysis (2009) Forbes: Inside Reader's Digest Turnaround (2010) New York Post: Berner's Golden Skirts at RDA (2010) MediaWeek: Rick Warren P31 Magazine Cancelled (2010) Folio: Analyst McAlpine on Sweepstakes Impact (2009)