Anyone who has dreamed of overnight riches has probably bought a few Mega Millions or Powerball tickets. Even knowing the odds are stacked way against them doesn’t deter people from playing every week.
Same thing for anyone who ever bought a magazine subscription in the hopes that it might also be a ticket to a big payday.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵
Most Americans are familiar with companies like American Family Publisher and Publishers Clearing House, companies that shilled magazines and online goods and also enticed customers to sign up for their offers for a chance to win cash.
Publishers Clearing House was known to surprise winners at home and present them with an oversized check, on camera.
Image Source: Getty Images
Demise in magazines affected Publishers Clearing House
Publishers Clearing House, also known as PCH, was founded in 1953; initially the company sold magazine subscriptions via direct mail offers and PCH received a commission for each sale.
People who purchased magazine subscriptions were automatically eligible to win cash or other prizes, but people who did not buy anything could also fill out a form and be entered to win prizes (this allowed the company to avoid the legal restrictions associated with lotteries, which are regulated by the government).
More on retail and bankruptcy:
Walmart store closing, auctioning off laptops and flat screen TVs Home Depot CEO sounds the alarm on a growing problemFamous restaurant files for Chapter 11 bankruptcy
Magazine publishers loved PCH because the company helped them get massive numbers of subscribers. The more subscribers a magazine had, the more the publisher could charge for ads.
Related: One of Oprah’s favorite things prepares for Chapter 11 bankruptcy
The company also sold books and online merchandise, but a decline in magazine publishing certainly played a role in the company’s downturn. As people turned to digital media and online shopping, Publishers Clearing House revenues plunged.
The ubiquity of Walmart and Amazon in e-commerce made it difficult for companies like PCH to compete.
Publishers Clearing House PCH can’t cash any more big checks
PCH was a beloved company, known for its integrity and philanthropy, reportedly donating $1 billion to charity over the years. The company had also awarded more than $500 million in prizes.
Darryl Lester started working at PCH right out of college and stayed for 30 years, working his way up to vice president level. He recently wrote about his experience in “Downfall of an Icon” and last month shared details on Mike Rowe’s podcast.
Lester says in the 1990s, the company started using the word “Finalist” in its marketing materials, a move that resulted in a 100% increase in sales. But that sort of verbiage also caught the attention of the Federal Trade Commission (FTC), which sued PCH for using misleading language.
Related: Struggling fashion accessory brand files Chapter 11 bankruptcy
The company faced additional lawsuits, including a recent one that accused PCH of suggesting people had to make a purchase in order to increase chances of winning. The FTC further accused the company of adding unexpected fees to winnings.
In 2023 PCH settled with the FTC, agreeing to pay $18.5 million.
On April 9, 2025, PCH filed for Chapter 11 bankruptcy protection in New York. The company listed itself for sale and is currently looking for business partners or stalking-horse bids for a sale of its assets. “PCH reported approximately $40 million in debts to unsecured creditors, and less than $10 million in assets,” according to a Bloomberg report.
PCH “intends to continue awarding prizes to winners nationwide,” according to a company statement.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
