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.

FILE - Jo-Ann Snyder reacts when she see's the check from Publishers Clearing House at her home in Wilkes-Barre Twp., Feb. 23, 2018. (Aimee Dilger/The Times Leader via AP)/The Times Leader via AP, file)

SEOUL, South Korea (AP) — An independent counsel on Tuesday demanded a death sentence for former South Korean President Yoon Suk Yeol on rebellion charges in connection with his short-lived imposition of martial law in December 2024.

Removed from office last April, Yoon faces eight trials over various criminal charges related to his martial law debacle and other scandals related to his time in office. Charges that he directed a rebellion are the most significant ones.

Independent counsel Cho Eun-suk’s team requested the Seoul Central District Court to sentence Yoon to death, according to the court.

The Seoul court is expected to deliver a verdict on Yoon in February. Experts say the court likely will sentence him to life in prison. South Korea hasn't executed anyone since 1997.

Yoon was scheduled to make remarks at Tuesday's hearing. He has maintained that his decree was a desperate yet peaceful attempt to raise public awareness about what he considered the danger of the liberal opposition Democratic Party, which used its legislative majority to obstruct his agenda. He called the opposition-controlled parliament “a den of criminals” and “anti-state forces.”

Yoon’s decree, the first of its kind in more than 40 years in South Korea, brought armed troops into Seoul streets to encircle the assembly and enter election offices. That evoked traumatic memories of dictatorships in the 1970s and 1980s, when military-backed rulers used martial law and other emergency decrees to station soldiers and armored vehicles in public places to suppress pro-democracy protests.

On the night of Yoon's martial law declaration, thousands of people rushed to the National Assembly to object to the decree and demand his resignation in dramatic scenes. Enough lawmakers, including even those in Yoon’s ruling party, managed to enter an assembly hall to vote down the decree.

Observers described Yoon’s action as political suicide. Parliament impeached him and sent the case to the Constitutional Court, which ruled to dismiss him as president.

It was a spectacular downfall for Yoon, a former star prosecutor who won South Korea’s presidency in 2022, a year after entering politics.

Lee Jae Myung, a former Democratic Party leader who led Yoon's impeachment bid, became president by winning a snap election last June. After taking office, Lee appointed three independent counsels to delve into allegations involving Yoon, his wife and associates.

There had been speculation that Yoon resorted to martial law to protect his wife, Kim Keon Hee, from potential corruption investigations. But in wrapping up a six-month investigation last month, independent counsel Cho’s team concluded that Yoon plotted for over a year to impose martial law to eliminate his political rivals and monopolize power.

Yoon’s decree and ensuing power vacuum plunged South Korea into political turmoil, halted the country’s high-level diplomacy and rattled its financial markets.

Yoon’s earlier vows to fight attempts to impeach and arrest him deepened the country’s political divide. In January last year, he became the country’s first sitting president to be detained.

Supporters of former South Korean President Yoon Suk Yeol hold signs outside of Seoul Central District Court, in Seoul, South Korea, Tuesday, Jan. 13, 2026. (AP Photo/Lee Jin-man)

FILE - Then South Korea's ousted former President Yoon Suk Yeol who is facing charges of orchestrating a rebellion when he declared martial law on Dec. 3, arrives to attend his trial at the Seoul Central District Court in Seoul, South Korea, Monday, May 12, 2025. (AP Photo/Ahn Young-joon, Pool, File)