Readers Digest Ousts Schadt After 3 Years

James P. Schadt resigned abruptly after three disappointing years at the helm of The Readers Digest Association Inc. and the man he succeeded was brought out of retirement to replace him.

George Grune, 68, who presided over Reader’s Digest for the decade that saw it become a publicly-owned company, said he was pleased to serve “during this interim period” while the company looks for a permanent successor.

The company offered no reason for the 59-year-old Schadt’s resignation in an announcement Monday, other than to say it was a mutual decision by the former soft drink executive and the Reader’s Digest board.

“The financial results have been extremely disappointing,” said Peter Appert, who follows the company for Alex. Brown & Sons in San Francisco. “The board lost confidence in his ability to turn things around.”