"The Jericho-based company was purchased by ARB Interactive for more than $7 million in a bankruptcy court action. Miami-based ARB specializes in mobile gaming and was one of three bidders in the auction, which was held last summer, according to court filings. PCH's new chief executive, Owen O'Donoghue, has announced a plan for Prize Protection Program guarantees going forward after the bankruptcy filing stopped payments to some sweepstakes winners."
"PCH, which was founded 73 years ago in Port Washington, filed for Chapter 11 bankruptcy protection from its creditors in April. The company listed assets of between $1 million and $10 million against liabilities of between $50 million and $100 million, court documents show. Company executives told a bankruptcy judge in Manhattan that they were working to "finalize a shift away" from the direct-mail business to a "pure digital advertising" model because of rising competition, expensive operating costs and changes in consumer behavior."
Publishers Clearing House emerged from Chapter 11 bankruptcy after being purchased by ARB Interactive for more than $7 million. ARB, a Miami-based mobile-gaming company, plans to modernize the sweepstakes and introduce mobile-first gaming. New CEO Owen O'Donoghue announced a Prize Protection Program that places prize money in FDIC-backed escrow accounts managed through a bank-run investment vehicle. PCH, founded 73 years ago, reported assets of $1-10 million and liabilities of $50-100 million. Executives plan to shift from direct-mail to a pure digital advertising model because of rising competition, high operating costs, and changing consumer behavior. Significant layoffs occurred in Manhattan and at headquarters.
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