Photo: Boston Globe
Publishers Clearing House (PCH), famous for its sweepstakes and oversized checks, has filed for Chapter 11 bankruptcy protection. The company, which began in 1953 as a direct-mail business from a Long Island home, is now shifting its focus from traditional mail and magazine subscriptions to a digital advertising model. This change aims to adapt to evolving consumer habits and financial challenges, as noted by CEO Andy Goldberg.
PCH has faced financial strain due to rising operational costs and competition from major retailers like Amazon and Walmart. The COVID-19 pandemic exacerbated these issues, leading to inventory challenges and increased shipping costs. The company has total liabilities of $65.7 million against assets of $11.7 million.
Despite these challenges, PCH plans to continue its sweepstakes and Prize Patrol activities. The company has secured $5.5 million in debtor-in-possession financing from Prestige Capital to maintain operations during restructuring. PCH will explore strategic options, including selling its digital assets.
The company has also faced legal scrutiny, with a $18.5 million settlement with the Federal Trade Commission in 2018 over deceptive practices. As part of its restructuring, PCH aims to end such practices and focus on transparency and consumer trust.