The sweepstakes company known for its giant checks and smiling winners has filed for bankruptcy.
Publishers Clearing House filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York to reorganize the Company’s capital structure and improve its long-term growth trajectory, according to a media release.
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The filing on Wednesday will allow the company to restructure.
“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 ... 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,” said Andy Goldberg, Chief Executive Officer.
According to its website, PCH was founded in 1953 as a mailing service offering consumers discounted magazine subscriptions. In 1967 it launched a sweepstakes to attract attention.
The company is known as the sweepstakes company whose famous Prize Patrol surprises winners on their doorsteps with oversized checks in amounts anywhere from $1,000 to multi-millions while TV cameras are rolling.
This week, PCH surprised a winner with a $50,000 award. The company has awarded over $614 Million in prizes over the years.