Publishers Clearing House LLC, the sweepstakes marketing company known for its prize patrol and million-dollar giveaways, has filed a motion seeking court approval to sell all or substantially all of its assets as part of its Chapter 11 bankruptcy proceedings. The company is proposing an auction process designed to maximize value for creditors while potentially preserving its iconic brand and intellectual property.
In documents filed on May 1, 2025, with the U.S. Bankruptcy Court for the Southern District of New York, Publishers Clearing House outlined bidding procedures for a sale process that would culminate in an auction scheduled for mid-June. The company filed for Chapter 11 protection on April 9, and has since been working with investment banker SSG Advisors to identify potential buyers.
"Prior to the Petition Date, the Debtor and its advisors initiated a comprehensive process to identify a strategic transaction that would maximize the value of the Debtor's business and assets for the benefit of all creditors," the filing states. "After receiving multiple expressions of interest from various parties, the Debtor files this Motion to establish uniform bidding procedures and an auction process."
According to court documents, the company has not yet secured a stalking horse bidder but indicated it would "promptly seek Court approval" if binding stalking horse agreements are obtained during the sale process. The motion establishes a bid deadline of June 13, with a virtual auction to follow on June 17 if multiple qualified bids are received. The company anticipates a sale hearing on June 25 and a closing date of July 15.
The motion reveals that the company entered into a post-petition secured financing arrangement with Prestige Capital Finance, LLC on April 14, providing much-needed liquidity during the bankruptcy process. Under this debtor-in-possession financing agreement, Prestige purchased certain accounts receivable, and the company's obligations are secured by first-priority liens on all its assets.
In a notable aspect of the filing, Publishers Clearing House requested the appointment of a consumer privacy ombudsman, acknowledging that the sale may include "personally identifiable information" such as customer names, addresses, email addresses, and other data collected through its marketing activities.
"The Debtor hereby requests appointment of a consumer privacy ombudsman to ensure that such Sale is consistent with the Debtor's privacy policy or otherwise complies with applicable nonbankruptcy law," the motion states, citing Sections 332 and 363 of the Bankruptcy Code.
The company's proposed bidding procedures require potential buyers to submit detailed information about their financial capacity and plans for the business, including whether they will assume liabilities due to prize winners—a unique consideration given Publishers Clearing House's sweepstakes business model.
William H. Henrich is serving as Co-Chief Restructuring Officer for the company during the bankruptcy proceedings. The case is being overseen by Chief U.S. Bankruptcy Judge Martin Glenn.
On April 24, the U.S. Trustee appointed an Official Committee of Unsecured Creditors consisting of three members: Marc D. Friedman, AG-We're 300 Jericho, LLC, and Senior Midwest Direct Inc. dba Jetson Mailers.
Publishers Clearing House is represented by Klestadt Winters Jureller Southard & Stevens, LLP in the bankruptcy proceedings, with attorneys Tracy L. Klestadt, Lauren C. Kiss, and Stephanie R. Sweeney serving as proposed counsel.
The case represents a significant turning point for the direct marketing company, which has been a household name for decades through its sweepstakes promotions, magazine subscription services, and more recently, online games and e-commerce offerings.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 27 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.