Publishers Clearing House Declares Bankruptcy, Aims to Focus on Digital Advertising
Publishers Clearing House (PCH) said Wednesday (April 9) that it filed for Chapter 11 bankruptcy protection to shed the cost of its legacy businesses and focus on digital advertising-supported entertainment.
The company plans to eliminate its direct mail and online retail shopping and subscription businesses but continue to award prizes to winners nationwide, it said in a press release Wednesday.
Its digital advertising business offers “free-to-play entertainment experiences” through its website and app, the release said.
“Today marks a crucial development in our transition to a digital advertising-supported entertainment company,” Publishers Clearing House CEO Andy Goldberg said in the release. “By taking this step, we are breaking free from the past financial constraints of our legacy direct mail and online retail merchandise and magazine subscription operating model and taking action to establish a strong foundation for our future — enabling PCH to unlock the full potential of our digital advertising and consumer insights business.”
PCH is prepared to receive debtor-in-possession financing that will provide the liquidity it needs to support day-to-day operations. It expects full continuity across its digital advertising operations, including its entertainment and prize offerings, according to the release.
The company also expects to continue sending out its Prize Patrol team to award prizes to sweepstakes winners, along with the “famous big check” that has been part of its brand for over 50 years, per the release.
“Importantly, our world-renowned sweepstakes will continue to be a cornerstone of our experiences, and we intend to continue offering free-to-play entertainment and awarding prizes in the ordinary course of business during and after this process to uphold the historic legacy of Publishers Clearing House,” Goldberg said in the release.
Bloomberg reported Wednesday that PCH’s Chapter 11 filing said the company owes as much as $100 million to more than 100,000 creditors and has between $1 million and $10 million in assets.
PCH said in court papers that it awarded more than $500 million in prizes over the decades, according to the report.
Through its social media and mobile apps, the company continues to offer sweepstakes, per the report.
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