Latest news with #AndyGoldberg
The Hill
10-04-2025
- Business
- The Hill
Publishers Clearing House, known for its ‘Prize Patrol' sweepstakes, files for bankruptcy
NEW YORK (AP) — Publishers Clearing House, a decades-old marketing and sweepstakes company known for doling out large 'Prize Patrol' checks, has filed for Chapter 11 bankruptcy protection. In an announcement this week, PCH said it was using the bankruptcy process to 'finalize a shift away' from its legacy business of direct-mail, retail merchandise and magazine subscriptions. The company is hoping to instead transition to a 'pure digital advertising' model, where it will continue to offer free-to-play entertainment and prizes. The Chapter 11 proceedings, filed in New York on Wednesday, arrive amid growing financial strain for PCH — which has struggled with rising operational costs and changing consumer habits in recent years. Pivoting from its old way of doing business will help the company break free from past constraints and 'establish a strong foundation for our future,' CEO Andy Goldberg said in a statement. But that doesn't mean the famous sweepstakes are going away. PCH says it plans to operate in a 'business-as-usual manner' throughout the bankruptcy process — noting that the 'Prize Patrol' team will continuing to deliver awards across the U.S. The company says it's lined up debtor-in-possession financing from Prestige Capital to fund operations through its restructuring. PCH's roots date back to 1953 — when Harold and LuEsther Mertz and their daughter, Joyce Mertz-Gilmore, formed a business out of their Long Island, New York home to send direct-to-consumer mailings that solicited subscribers for a number of magazines through one single offering. The company later grew with chances for consumers to win money — first launching a direct mail sweepstakes in 1967 — and expanded its offerings to a wide variety of merchandise, from collectible figurines to houseware and 'As Seen on TV' accessories, in the years that followed. Its in-person 'Prize Patrol' team was formed in 1989. PCH became known for surprising prize winners with oversized checks, which was often filmed and featured in TV commercials. In Wednesday court documents, the company said it has awarded over half a billion dollars in prizes and continues to attract millions of contestants today. But its operations haven't been without financial strain — particularly in recent years. 'While PCH's direct mail and e-commerce programs were profitable for decades, changing patterns of consumer behavior, costs and competition, along with a declining pool of new prospecting names, negatively impacted the business, resulted in losses beginning in 2022,' William H. Henrich, co-chief restructuring officer for PCH, wrote in a court declaration Wednesday. Henrich pointed to a handful of cost pressures — including rising shipping and postal rates, inventory and supply chain challenges that have continued since the start of the COVID-19 pandemic and rising competition from major retailers today, like Walmart and Amazon, that have dominated the e-commerce space. PCH also faced some scrutiny from regulators who previously raised concerns about consumers mistakenly believing that making purchases from the company would improve their chances at winning its sweepstakes. As a result, PCH has racked up several costly legal settlements over the years — most recently, Wednesday's court documents note, paying $18.5 million to resolve allegations from the Federal Trade Commission in 2018. As of the end of March, PCH had total assets of nearly $11.7 million and total liabilities of about $65.7 million, court documents show. The company currently has 105 employees and an annual gross revenue of about $38 million.
The Independent
10-04-2025
- Business
- The Independent
Publishers Clearing House, known for its 'Prize Patrol' sweepstakes, files for bankruptcy
Publishers Clearing House, a decades-old marketing and sweepstakes company known for doling out large 'Prize Patrol' checks, has filed for Chapter 11 bankruptcy protection. In an announcement this week, PCH said it was using the bankruptcy process to 'finalize a shift away' from its legacy business of direct-mail, retail merchandise and magazine subscriptions. The company is hoping to instead transition to a 'pure digital advertising" model, where it will continue to offer free-to-play entertainment and prizes. The Chapter 11 proceedings, filed in New York on Wednesday, arrive amid growing financial strain for PCH — which has struggled with rising operational costs and changing consumer habits in recent years. Pivoting from its old way of doing business will help the company break free from past constraints and 'establish a strong foundation for our future," CEO Andy Goldberg said in a statement. But that doesn't mean the famous sweepstakes are going away. PCH says it plans to operate in a "business-as-usual manner" throughout the bankruptcy process — noting that the 'Prize Patrol' team will continuing to deliver awards across the U.S. The company says it's lined up debtor-in-possession financing from Prestige Capital to fund operations through its restructuring. PCH's roots date back to 1953 — when Harold and LuEsther Mertz and their daughter, Joyce Mertz-Gilmore, formed a business out of their Long Island, New York home to send direct-to-consumer mailings that solicited subscribers for a number of magazines through one single offering. The company later grew with chances for consumers to win money — first launching a direct mail sweepstakes in 1967 — and expanded its offerings to a wide variety of merchandise, from collectible figurines to houseware and 'As Seen on TV' accessories, in the years that followed. Its in-person 'Prize Patrol' team was formed in 1989. PCH became known for surprising prize winners with oversized checks, which was often filmed and featured in TV commercials. In Wednesday court documents, the company said it has awarded over half a billion dollars in prizes and continues to attract millions of contestants today. But its operations haven't been without financial strain — particularly in recent years. 'While PCH's direct mail and e-commerce programs were profitable for decades, changing patterns of consumer behavior, costs and competition, along with a declining pool of new prospecting names, negatively impacted the business, resulted in losses beginning in 2022,' William H. Henrich, co-chief restructuring officer for PCH, wrote in a court declaration Wednesday. Henrich pointed to a handful of cost pressures — including rising shipping and postal rates, inventory and supply chain challenges that have continued since the start of the COVID-19 pandemic and rising competition from major retailers today, like Walmart and Amazon, that have dominated the e-commerce space. PCH also faced some scrutiny from regulators who previously raised concerns about consumers mistakenly believing that making purchases from the company would improve their chances at winning its sweepstakes. As a result, PCH has racked up several costly legal settlements over the years — most recently, Wednesday's court documents note, paying $18.5 million to resolve allegations from the Federal Trade Commission in 2018. As of the end of March, PCH had total assets of nearly $11.7 million and total liabilities of about $65.7 million, court documents show. The company currently has 105 employees and an annual gross revenue of about $38 million.
Yahoo
10-04-2025
- Business
- Yahoo
Publishers Clearing House, known for its 'Prize Patrol' sweepstakes, files for bankruptcy
NEW YORK (AP) — Publishers Clearing House, a decades-old marketing and sweepstakes company known for doling out large 'Prize Patrol' checks, has filed for Chapter 11 bankruptcy protection. In an announcement this week, PCH said it was using the bankruptcy process to 'finalize a shift away' from its legacy business of direct-mail, retail merchandise and magazine subscriptions. The company is hoping to instead transition to a 'pure digital advertising" model, where it will continue to offer free-to-play entertainment and prizes. The Chapter 11 proceedings, filed in New York on Wednesday, arrive amid growing financial strain for PCH — which has struggled with rising operational costs and changing consumer habits in recent years. Pivoting from its old way of doing business will help the company break free from past constraints and 'establish a strong foundation for our future," CEO Andy Goldberg said in a statement. But that doesn't mean the famous sweepstakes are going away. PCH says it plans to operate in a "business-as-usual manner" throughout the bankruptcy process — noting that the 'Prize Patrol' team will continuing to deliver awards across the U.S. The company says it's lined up debtor-in-possession financing from Prestige Capital to fund operations through its restructuring. PCH's roots date back to 1953 — when Harold and LuEsther Mertz and their daughter, Joyce Mertz-Gilmore, formed a business out of their Long Island, New York home to send direct-to-consumer mailings that solicited subscribers for a number of magazines through one single offering. The company later grew with chances for consumers to win money — first launching a direct mail sweepstakes in 1967 — and expanded its offerings to a wide variety of merchandise, from collectible figurines to houseware and 'As Seen on TV' accessories, in the years that followed. Its in-person 'Prize Patrol' team was formed in 1989. PCH became known for surprising prize winners with oversized checks, which was often filmed and featured in TV commercials. In Wednesday court documents, the company said it has awarded over half a billion dollars in prizes and continues to attract millions of contestants today. But its operations haven't been without financial strain — particularly in recent years. 'While PCH's direct mail and e-commerce programs were profitable for decades, changing patterns of consumer behavior, costs and competition, along with a declining pool of new prospecting names, negatively impacted the business, resulted in losses beginning in 2022,' William H. Henrich, co-chief restructuring officer for PCH, wrote in a court declaration Wednesday. Henrich pointed to a handful of cost pressures — including rising shipping and postal rates, inventory and supply chain challenges that have continued since the start of the COVID-19 pandemic and rising competition from major retailers today, like Walmart and Amazon, that have dominated the e-commerce space. PCH also faced some scrutiny from regulators who previously raised concerns about consumers mistakenly believing that making purchases from the company would improve their chances at winning its sweepstakes. As a result, PCH has racked up several costly legal settlements over the years — most recently, Wednesday's court documents note, paying $18.5 million to resolve allegations from the Federal Trade Commission in 2018. As of the end of March, PCH had total assets of nearly $11.7 million and total liabilities of about $65.7 million, court documents show. The company currently has 105 employees and an annual gross revenue of about $38 million. Sign in to access your portfolio
Associated Press
10-04-2025
- Business
- Associated Press
Publishers Clearing House, known for its ‘Prize Patrol' sweepstakes, files for bankruptcy
NEW YORK (AP) — Publishers Clearing House, a decades-old marketing and sweepstakes company known for doling out large 'Prize Patrol' checks, has filed for Chapter 11 bankruptcy protection. In an announcement this week, PCH said it was using the bankruptcy process to 'finalize a shift away' from its legacy business of direct-mail, retail merchandise and magazine subscriptions. The company is hoping to instead transition to a 'pure digital advertising' model, where it will continue to offer free-to-play entertainment and prizes. The Chapter 11 proceedings, filed in New York on Wednesday, arrive amid growing financial strain for PCH — which has struggled with rising operational costs and changing consumer habits in recent years. Pivoting from its old way of doing business will help the company break free from past constraints and 'establish a strong foundation for our future,' CEO Andy Goldberg said in a statement. But that doesn't mean the famous sweepstakes are going away. PCH says it plans to operate in a 'business-as-usual manner' throughout the bankruptcy process — noting that the 'Prize Patrol' team will continuing to deliver awards across the U.S. The company says it's lined up debtor-in-possession financing from Prestige Capital to fund operations through its restructuring. PCH's roots date back to 1953 — when Harold and LuEsther Mertz and their daughter, Joyce Mertz-Gilmore, formed a business out of their Long Island, New York home to send direct-to-consumer mailings that solicited subscribers for a number of magazines through one single offering. The company later grew with chances for consumers to win money — first launching a direct mail sweepstakes in 1967 — and expanded its offerings to a wide variety of merchandise, from collectible figurines to houseware and 'As Seen on TV' accessories, in the years that followed. Its in-person 'Prize Patrol' team was formed in 1989. PCH became known for surprising prize winners with oversized checks, which was often filmed and featured in TV commercials. In Wednesday court documents, the company said it has awarded over half a billion dollars in prizes and continues to attract millions of contestants today. But its operations haven't been without financial strain — particularly in recent years. 'While PCH's direct mail and e-commerce programs were profitable for decades, changing patterns of consumer behavior, costs and competition, along with a declining pool of new prospecting names, negatively impacted the business, resulted in losses beginning in 2022,' William H. Henrich, co-chief restructuring officer for PCH, wrote in a court declaration Wednesday. Henrich pointed to a handful of cost pressures — including rising shipping and postal rates, inventory and supply chain challenges that have continued since the start of the COVID-19 pandemic and rising competition from major retailers today, like Walmart and Amazon, that have dominated the e-commerce space. PCH also faced some scrutiny from regulators who previously raised concerns about consumers mistakenly believing that making purchases from the company would improve their chances at winning its sweepstakes. As a result, PCH has racked up several costly legal settlements over the years — most recently, Wednesday's court documents note, paying $18.5 million to resolve allegations from the Federal Trade Commission in 2018.
Yahoo
10-04-2025
- Business
- Yahoo
Sweepstakes giant Publishers Clearing House files for bankruptcy
(WJET/WFXP) — Publishers Clearing House (PCH), the sweepstakes company best known for its decades of deals and big checks, filed for Chapter 11 bankruptcy Wednesday evening. As part of the bankruptcy, the company now plans to transform itself into a digital advertising-supported entertainment company, shifting away from its legacy direct mail and subscription services. PCH has largely exited its print marketing business by 2024 and will now phase these services out over the coming months. Their magazine and merchandise advertising service brought in $879 million in revenue in 2018 but quickly declined as customers began shifting to online shopping, a trend that was greatly exacerbated by the COVID-19 pandemic. The company's rising costs for printing, mailing, and TV advertising became unsustainable, leading the company to pull back from its direct mail marketing business. 'Today marks a crucial development in our transition to a digital advertising-supported entertainment company,' said Andy Goldberg, Chief Executive Officer. '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. 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.' According to a press release, PCH will operate as usual, continuing with its well-known sweepstakes and other online operations. PCH's renowned 'Prize Patrol' team is also expected to continue traveling across the nation, surprising winners with big checks, champagne, and flowers. The Patrol Team is already on the road in search of their next weekly $10,000 winner, which will be awarded later this week. According to court documents, approximately $26 million in prize money for the larger prizes will be paid out over as many as 60 years. In the next 30 days, the company will pay $474,500 in price winnings. Along with these payments, the company currently owes $1.8 million to recent winners, with all awards pending the receipt of necessary information. In June of 2023, the Federal Trade Commission ordered PCH to pay $18.5 million to consumers who spent money and wasted their time, and make substantial changes to how it conducts business online. The FTC, citing a complaint against PCH, said that the company 'used dark patterns—manipulative phrasing and website design—to convince consumers that they needed to buy a product of some kind to enter the company's sweepstakes or increase their chances of winning As part of the order, the company was to end its deceptive practices, separate sales from sweepstakes, make clear disclosures, end surprise fees, destroy consumer data prior to January 1, 2019, and preserve records of any of its research or testing used for marketing and promotions. According to court documents, the New York-based company currently reports $50 million to $100 million in liabilities and only $1 million to $10 million in current assets, entering bankruptcy holding $490,000 in cash. To maintain its operations during the restructuring process, PCH has acquired a $5.5 million debtor-in-possession financing from Prestige Capital. PCH notes that they will be exploring a variety of strategic operations moving forward, which may include a sale of its digital assets. Publishers Clearing House was founded in 1953 in the basement of founder Harold Mertz in Long Island, New York. The company began as a magazine subscription service and quickly grew; by 1982, revenues exceeded $100 million. Since its founding, PCH has awarded over half a billion dollars to winners across the nation. PCH currently employs 105 people with an annual gross revenue of $38 million. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
