Publisher of Reader's Digest magazine in America has applied for bankruptcy protection faced with falling print circulation and looming debt payments.

TUS circulation of its flagship mag have dropped from a peak of more than 17m in the 1970s to just above 8m last year. Reader's Digest said the prearranged bankruptcy, which only affects US operations, would give lenders an ownership stake in exchange for lowering its debts from $2.2bn.

The publisher expects to emerge from bankruptcy 45 to 90 days after the filing.