Publishers Clearing House Files for Bankruptcy, But Will Still Run Sweepstakes

Publishers Clearing House commercials — you know, the ones where they’d show up at someone’s door with a giant check — were inescapable in the 1980s and 1990s, but you probably haven’t seen one in years. If you’re wondering what happened to that company, there’s some news this week: PCH just filed for bankruptcy. Here’s what we know, including the fate of that famed sweepstakes.

Publishers Clearing House plans to reshape its business model, and bankruptcy is how it has chosen to do that. According to Reuters, the plan is to get rid of its direct mail catalog marketing and magazine subscription businesses, which have been declining for years as more people do business online. That will allow PCH to focus on the internet-based parts of its business. According to the bankruptcy filing, the company has $490,000 in cash, but about $40 million in debts.

Publishers Clearing House is hoping to be able to sell some of its assets or find a business partner during the bankruptcy process. That means it’s not planning to close down, but if no buyer can be found or no funding secured, it might mean the company will eventually have to close. Only time will tell. 

Yes, PCH will continue to give away money as usual during its bankruptcy process. Since moving away from doing business through the mail, the company has turned to running free online games and sweepstakes instead. “We intend to continue offering free-to-play entertainment and awarding prizes in the ordinary course of business during and after this process,” said CEO Andy Goldberg in a statement to Reuters.  

Publishers Clearing House has given out $614 million in prizes since its founding in 1953, some of it by the famous “Prize Patrol” that you’ve seen in the TV commercials with all the balloons. The company currently pays prize winners about $30,000 each week, with about $1.8 million owed to recent winners, according to bankruptcy filings. As for those huge lifetime prizes, PCH will owe those winners about $26 million over the next 60 years.  

Publishers Clearing House isn’t the only company that’s filed for bankruptcy recently. Big retailers like Joann, a national craft and hobby store, and Big Lots, a discount retailer, have closed some or all locations this year.  

On the chain restaurant side of things, TGI Friday’s, Bar Louie, and Hooters have filed for bankruptcy in the last few months. That’s on top of Red Lobster, Boston Market, and more that filed last year.