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The 72 -year -old company owes $ 100 million for more than 100,000 creditors, it has been said in a chapter 11 filing in Manhattan. PCH listed the property between $ 1 million and $ 10 million on its bankruptcy petition.
Pch rose prominently through advertisements promoting its sweepstake, which flooded the day television in the late 1980s and late 1990s. The company said that it had awarded more than $ 500 million in awards in the decades and continued to offer sweepstake through social media and mobile apps as per court papers.
According to court documents, the company’s revenue online consumers demanded rapid delivery and free shipping, which the PCH could not complete. Revenue in 2018 fell from around $ 879 million to $ 181 million last year, showing court documents.
The company plans to revive its luck by advertising to the customers visiting its website, which attracted 36 million visitors last year, the company asked to file to a court.
While in bankruptcy, the company will surpass its magazine membership and direct-mail sales operations that the founders started in 1953 and focused on becoming a “net digital advertisement”, Chief Executive Officer Andy Goldberg said in a statement.
Goldberg said, “The important thing is that our world-famous sweepstake will remain the cornerstone of our experiences.”
The company said in the court papers that it would use its time in chapter 11 to reorganize its operation and increase the online appearance of PCH. It said that it will also consider opportunities to sell its property.
PCH expanded on the web, maintaining its mail-order marketing business through the acquisition of several digital firms in the late 1990s. The company’s e-commerce marketing program became a major source of revenue along with advertising, PCH-co-maintained reorganization officer William Heinrich filed in a court.
As soon as the PCH revenue declined, the company gave rise to the loss in 2022, Henrik said. Meanwhile, the television advertisement became more expensive and less effective amidst the rise of streaming, “it became difficult to reach the audience on a large scale of the earlier decades,” Henriques said.
According to court records, the owners of the company include the founders, Herold and Lucer Mertz and his daughter, various trusts associated with Joyce Mertz-Gilmore.
The case is clearing the number of House LLC, number 25-10694 in the US bankruptcy court for the southern district of New York.
(Update with the company’s statement in the fourth paragraph.)
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