For nearly six decades, Publishers Clearing House held the attention of U.S. consumers dreaming of a knock on their door from the “Prize Patrol,” a bundle of balloons and an oversized check — which oftentimes came in the form of a lifetime payout.
Now, the sweepstakes company is in bankruptcy. Some of those lucky winners, who built their lives around their weekly checks from Publishers Clearing House, won’t receive another cent from the company, sending them scrambling to make ends meet.
Publishers Clearing House filed for Chapter 11 bankruptcy protection in April, citing mounting financial constraints. The filing revealed the company had amassed liabilities between $50 and $100 million, but had available assets between $1 and $10 million, per The New York Times.
In July, the company was acquired out of bankruptcy protection by mobile gaming platform, ARB Interactive, for $7.1 million, per The Associated Press. And ARB says it is not responsible to continue awarding any prize money awarded before July 15.
But prize money started going cold before ARB Interactive took over.
John Wyllie was awarded $5,000 a week by Publishers Clearing House in 2012. With the money, he retired and restructured his life. Wylie bought a home near his kids in Bellingham, Washington, with enough land for his pack of dogs and two goats.
At the start of every year since, Wyllie has received a check for $260,000. This year, the check did not come.
“This feels like a nightmare. I thought this was going to go on for the rest of my life, so I didn’t really have to worry about money,” Wyllie told KGW-TV.
He has sold his trailer, jet ski and other items to stay financially afloat, but has concerns about the sudden financial pain.
“Why didn’t somebody give me a heads up? ‘Hey, we’re going out of business.’ It’s not a good way to treat anyone,” he continued. “Pretty sure I’m going to lose my home.”
Publishers Clearing House was founded in 1953 by Harold and LuEsther Mertz and their daughter Joyce out of their Long Island home. The company was launched to send direct-to-consumer mailings, which sold magazine subscriptions for several publications in a single offer, per The Associated Press.
The company was paid a commission for every subscription it sold.
In 1967, Publishers Clearing House expanded with a sweepstakes incentive. Customers could enter to win prizes, such as houseware, jewelry, books and collectable figurines, whether or not they signed a magazine subscription.
The “Prize Patrol” was launched in 1989, granting oversized checks with large cash prizes. Winners were often featured in TV commercials led by TV personality Ed McMahon.
A spokesman for ARB Interactive recognized frustrations surrounding withdrawn prize money and is focused on “restoring and preserving the trust that has defined the Publishers Clearing House brand for decades,” per CNN.
“At ARB Interactive, we are committed to restoring and preserving the trust that has defined the Publishers Clearing House brand for decades,” the statement said, adding that the company is “taking decisive steps to ensure that every future prize winner can participate with absolute confidence.”
The statement concluded, “Our vision is to rebuild P.C.H. as a brand synonymous with trust, excitement and long-term integrity, and to ensure that every future winner can have full confidence their prizes will be paid in full, no matter what.”