Former Publishers Clearing House Winners Face Uncertainty After Bankruptcy

Veteran Couple Anticipates Lost Sweepstakes Payments

Tamar and Matthew Veatch, disabled Army veterans caring for three young children, had been relying on substantial annual payments from Publishers Clearing House (PCH) to supplement their Veterans Affairs disability benefits. However, when their anticipated payment of nearly $200,000 after taxes failed to arrive this February, their financial stability was threatened.

Impact of PCH Bankruptcy and Acquisition by ARB Interactive

Originally, PCH promised the Veatches that payments would resume quarterly starting in July. But in April, the company declared bankruptcy, revealing that many winners, including ten large prize recipients, were owed significant unpaid winnings—some exceeding $2 million each. When ARB Interactive acquired PCH’s assets for $7.1 million in July, they informed winners that only prizes awarded after July 15 would be honored automatically. Those who won before that date must now navigate the slow and uncertain bankruptcy court process to reclaim their earnings.

ARB Interactive, a mobile gaming and sweepstakes company, announced plans to safeguard future payouts through a new system that separates prize funds from company finances. While ARB expresses regret towards previous winners affected by the bankruptcy, it maintains no legal obligation to cover debts incurred before the acquisition.

Lifetime Payouts in Question for Veatches and Other Winners

The Veatches had won the renowned “$5,000 a Week Forever” contest, a sweepstakes that promised lifelong payments to the winner and an appointed beneficiary. This steady income allowed them to enjoy family trips and experiences previously out of reach, such as a European anniversary vacation and a train journey to Canada for their son during the holidays. The sudden halt in payments has forced them to tighten their household budget substantially.

Darrell Lester, a former PCH employee until 2003, noted that the company traditionally secured winners’ payments by purchasing prepaid annuities from banks, ensuring payment regardless of PCH’s future financial challenges. This practice was discontinued in later years.

PCH’s Decline and Financial Challenges Leading to Bankruptcy

Since its founding in 1953 and famed for its Prize Patrol, PCH faced prolonged difficulties due to declining mail-order revenues and increasing operational costs. Owing $65 million, the company filed for Chapter 11 bankruptcy following a costly settlement with the Federal Trade Commission in 2023 over deceptive advertising practices.

Winners’ Feelings and Future Uncertainties

The Veatches express not only financial hardship but profound disappointment and frustration over the unexpected cessation of payments. They believe that more transparent and timely communication could have helped them prepare. As they await a resolution through bankruptcy proceedings, they hope to eventually receive the compensation they were promised.