The Clearing House editors, a marketing and raffle company known for distributing large “prize patrol” checks, has requested bankruptcy protection of chapter 11.
In an announcement this week, PCH said he was using the bankruptcy process to “finish a change” of his business inherited by email, retail goods and magazine subscriptions. The company expects to introduce the transition to a “pure digital advertising” model, where it will continue to offer entertainment and free awards.
The procedures of Chapter 11, presented in New York on Wednesday, arrive in the midst of the growing financial tension for PCH, which has had problems with the increase in operational costs and the change of consumption habits in recent years.
Pivotar from its ancient way of doing business will help the company free themselves from limitations and “establish a solid base for our future,” said Andy Goldberg CEO in a statement.
But that does not mean that the famous raffle leaves. PCH says that it plans to operate in a “similar way to a business” through the bankruptcy process that, which is not that the “prize patrol team will continue to deliver awards to the United States. The company says that it is aligned with the financing of the debtor in possession of prestigious capital to finance operations through its restructuring.
The roots of PCH date back to 1953, when Harold and Luesther Mertz and his daughter, Joyce Mertz-Gilmore, formed a business at their home in Long Island, New York, to send direct consumption emails that applied subscribers for several magazines.
Later, the company grew with possibilities that consumers win money, for the first time in a direct mail raffle in 1967, and extended its offers to a wide variety of goods, from collectible figures to Houseware and “as seen in television accessories.” His team in person “Awards Patrol” was formed in 1989.
PCH became known by the surprising awards winners with large checks, which was filmed and appeared in television commercials. In Wednesday’s judicial documents, the company said it has awarded approximately half a billion dollars in prizes and continues to attract millions of contestants today.
But their operations house without financial tension, particularly in recent years.
“While PC direct mail and electronic programs were profitable for decades, changing consumer behavior patterns, costs and competition, together with a decline group of new prospecting names, the business negatively impacted, results in 2022, Henrich, William, William, William, William, -Chief, William, Chief, Chief, Chief, William, William, William, William, William, William, William, William William, William, William, in a Court statement on Wednesday.
Henrich Poeded to a Handful of Cost Pressures-Including Rising Shipping and Postal Rates, Inventory and Supply Challenges that have continue Specake Space Mart and Amazon, Walmart and Amazon, Walmart and Amazon, Walmart and Amazon, Walmart and Amazon, Walmart and Amazon.
PCH also faced a certain scrutiny of the regulators who previously raised Conerns about consumers mistakenly believing to make the company’s purchases would improve their possibilities of winning its draw. As a result, PCH has accumulated several expensive legal settlements over the years: more recently, Wednesday’s judicial documents note pays $ 18.5 million to resolve the accusations of the Federal Commerce Commission in 2018.
At the end of March, PCH had total assets of almost $ 11.7 million and total liabilities of approximately $ 65.7 million, according to judicial documents. Currently, the company has 105 employees and an annual gross income of approximately $ 38 million.