Publishers Clearing House files for bankruptcy
Publishers Clearing House, the company known for its sweepstakes and massive check giveaways, filed for Chapter 11 bankruptcy Wednesday.
The company said the filing will reorganize its capital structure and improve its long-term growth trajectory.
“Today marks a crucial development in our transition to a digital advertising-supported entertainment company,” PCH CEO Andy Goldberg said in a statement.
PCH said it plans to utilize the financial restructuring process to finalize the shift away from its legacy direct mail, retail merchandise and magazine subscription businesses to focus on transforming to a digital advertising business.
Goldberg reiterated that the company's sweepstakes will continue.
"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,” he said.
To continue to fund its operations, PCH says it has lined up financing from Prestige Capital. Upon court approval, PCH anticipates the financing would provide liquidity to support operations during the reorganization process.
The company says its prize patrol will be on the road later this week to find its latest weekly winner.