Filing Alert: Publishers Clearing House Chapter 11
Publishers Clearing House Files Chapter 11 in Southern District of New York
Update (April 10, 2025): Bondoro has published a full case summary for the Publishers Clearing House Chapter 11 filing.
Bondoro
Publishers Clearing House LLC, a New York-based sweepstakes and digital entertainment company known for its iconic “Prize Patrol” and ad-supported online gaming and media platforms, filed for Chapter 11 protection on Apr. 9 in the U.S. Bankruptcy Court for the Southern District of New York.
The filing follows mounting losses driven by the decline of its legacy direct mail and e-commerce businesses amid rising costs, shifting consumer behavior toward digital platforms, increased competition, and a costly 2018 FTC settlement. The company seeks to restructure its operations, shed legacy debts and leases, and potentially pursue a sale, supported by a proposed $5.5 million DIP receivables purchase facility from Prestige Capital Finance.
The company reports $1 million to $10 million in assets and $50 million to $100 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-10694.
Initial Budget
Top Unsecured Claims
Key Parties
Counsel:
- Tracy L. Klestadt
- Klestadt Winters Jureller Southard & Stevens, LLP
- Email: tklestadt@klestadt.com
Financial Advisors:
- Getzler Henrich & Associates LLC
Investment Banker:
- SSG Advisors, LLC
Signatories:
- William H. Henrich – Co-Chief Restructuring Officer
Claims Agent:
- Omni Agent Solutions, Inc.
Equity Security Holders:
- Elizabeth B. Gilmore – 16.1% Equity Interest
- Trust u/w Joyce M. Gilmore, F/B/O Mertz Gilmore Foundation – 10.6% Equity Interest
- LuEsther T. Mertz Legacy Trust for The New York Botanical Garden – 10% Equity Interest
- LuEsther T. Mertz Legacy Trust for The Public Theater – 10% Equity Interest
- Stephen Siller Tunnel to Towers Foundation – 10% Equity Interest
- First Mertz Trust – 8% Equity Interest
- Community Funds, Inc. – 6.8% Equity Interest
- Other Minority Holders – 28.5% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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