Amid bankruptcy, some Publishers Clearing House winners are facing the end of ‘forever’ prizes
NEW YORK AP For decades Publishers Clearing House doled out hefty checks on the doorsteps of hopeful consumers across the U S including prizes that boasted lifetime payouts But specific of those winners are now facing an end to the forever money they were once promised The turmoil arrives amid PCH s ongoing bankruptcy process The sweepstakes and marketing company filed for Chapter in April citing growing financial strain that spanned from rising operational costs and changes in consumer behavior In July gaming platform ARB Interactive purchased certain assets from PCH for million and established PCH Digital a new platform that hosts sweepstakes opportunities But under the terms of that deal ARB says it s not responsible to pay out prizes issued by PCH prior to July meaning that the company will not pay people who won sweepstakes before that date with an exception of two unawarded SuperPrizes still being promoted In a declaration sent to The Associated Press ARB recognized the disappointment for past winners that it reported was caused by the bankruptcy process and noted that it was committed to restoring and preserving the trust of the PCH brand going forward ARB added that it was taking decisive measures to ensure that every future prize winner can participate with absolute confidence The company pointed to plans for a paying structure that stands separate from ARB to ensure that all future PCH prizes are honored regardless of ARB s financial status PCH did not right now respond to requests for comment on Tuesday It wasn t promptly clear how numerous past winners of PCH sweepstakes were no longer seeing forever checks At the time of April s Chapter filing PCH listed unidentified prize winners among its creditors with the largest unsecured proposes totaling millions of dollars court documents show And for selected trouble bubbled up before the Chapter filing One man who won a a week forever award from PCH in notified The New York Times and KGW that he didn t receive his annual check from the company back in January which has since caused him to scramble to pay his bills without the money he s learned to rely on PCH s roots date back to 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 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 company was formed in PCH became known for surprising prize winners with oversized checks which was often filmed and featured in TV commercials But its operations didn t come without financial strain particularly in new years When filing for Chapter in April PCH stated it was working to finalize a shift away from its legacy direct-mail business and instead transition to a pure digital advertising model citing rising competition expensive operating costs and changes in consumer behavior Over the years PCH also faced certain 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 effect PCH has racked up several costly legal settlements Source
