Publishers Clearing House, based in Jericho, files for bankruptcy

Publishers Clearing House, the Jericho-based magazine subscription service once famous for surprising sweepstakes winners at home with an oversize check, has filed for bankruptcy, the company announced on Wednesday.

The company, founded in 1953 in Port Washington, will "shift away from its legacy direct mail and retail merchandise and magazine subscription businesses and focus on its transformation to a pure digital advertising business that offers free-to-play entertainment experiences through a variety of web and app experiences, powered by a chance to win."

The company's Prize Patrol was once ubiquitous on television, showing up to unsuspecting sweepstakes winners' homes with a check in tow. The company's pioneering idea: hawk multiple magazine titles — from different publishers — via a single envelope, Newsday reported. The sweepstakes idea came about 15 years later — to tempt recipients into opening the solicitation. 

But the company, which made money signing up people for subscriptions and awarding prizes to a sliver of them, has struggled as the publishing industry has flagged and regulators scrutinized business practices.

In 2023, Publishers Clearing House agreed to pay $18.5 million to customers who were targets of the company’s business practices — including surprise fees — that the Federal Trade Commission called "misleading," according to the agency website. The company reached a $52 million settlement in 2000-2001 on consumer deception charges, involving all 50 states, Newsday reported. Among the allegations: The tone and appearance of the company's mailings misled recipients to believe that they had won or that buying products would boost chances of winning.

This week, Andy Goldberg, the company's chief executive, said in a news release: "By taking this step, we are breaking free from the past financial constraints of our legacy direct mail and online retail merchandise and magazine subscription operating model, and taking action to establish a strong foundation for our future — enabling PCH to unlock the full potential of our digital advertising and consumer insights business. Importantly, our world-renowned sweepstakes will continue to be a cornerstone of our experiences, and we intend to continue offering free-to-play entertainment and awarding prizes in the ordinary course of business during and after this process to uphold the historic legacy of Publishers Clearing House."

Last year, after announcing it would lay off about half of its 393 employees at 300 Jericho Quadrangle, its headquarters, Publishers Clearing House began negotiating a sublease with a tenant, Newsday reported in August. Nassau County has given Publishers Clearing House millions in tax breaks. The company has also had offices across the country, including in Manhattan, Chicago, Boston and Portland, Maine, Newsday reported in 2018. 

By Matthew Chayes

matthew.chayes@newsday.comchayesmatthew

Matthew Chayes, a Newsday reporter since 2007, covers New York City.