Overview

• Publishers Clearing House (PCH) has filed for Chapter 11 bankruptcy protection, citing over $40 million in debt and limited cash reserves of $490,000.
• The company is pivoting from its legacy direct mail, retail merchandise, and magazine subscription model to a digital advertising and online entertainment business.
• PCH has secured debtor-in-possession financing from Prestige Capital to fund its operations during the restructuring process.
• The company will maintain its renowned Prize Patrol and sweepstakes, continuing to award prizes to winners nationwide during and after the restructuring.
• PCH’s financial challenges follow years of declining revenue, competition from e-commerce giants, and regulatory scrutiny, including an $18.5 million FTC settlement in 2023 over misleading practices.