Publishers Clearing House Files for Bankruptcy

NEW YORK — Publishers Clearing House, a marketing and sweepstakes company known for delivering oversized checks to people's homes, has filed for Chapter 11 bankruptcy.

PCH announced this week it was using the bankruptcy process to help move away from its business model of direct-mail, retail merchandise and magazine subscriptions. 

The company stated it plans to transition to a “pure digital advertising" model.

As for its famous sweepstakes, PCH said its “Prize Patrol” team will continue to deliver checks to winners across the country. The company said it secured financing to fund its operations during the upcoming restructuring.

PCH was formed in 1953 with direct-to-consumer mailings that solicited subscribers for a number of magazines through a single offering.

The company began giving consumers a chance to win money in 1967, and its contests grew from there. Its in-person “Prize Patrol” team was formed in 1989, and PCH became known for surprising winners with oversized checks at their front door, which was filmed and featured in TV commercials.