The QVC Group, which owns the popular QVC and Home Shopping Network groups of television channels and websites, filed for chapter 11 bankruptcy protection as it restructures, but said that it has enough liquidity to pay its bills and has no layoffs or furloughs planned. Photo courtesy of QVC Group
April 17 (UPI) — The parent company of QVC, which owns the QVC and Home Shopping Network group of shopping channels, plans to file for chapter 11 bankruptcy protection.
QVC Group is entering into a restructuring agreement with the holders of its $6.6 billion of debt amid declining revenue in the last several years because of increased competition from social media and internet shopping sites.
The company said in a press release that all of its brands — QVC, HSN and Cornerstone Brands — continue to operate “as usual,” as QVC said it has “ample liquidity” to handle paying vendors, suppliers and other non-secured creditors for all goods and services.
It also noted that “there are no planned layoffs or furloughs in connection with the financial restructuring process, and all team members should fully expect to continue receiving their wages and benefits without interruption.”
The company started on cable television in 1986 — its name stands for Quality, Value, Convenience — and quickly became one of the most popular channels available.
In 2017, QVC bought the HSN group of shopping TV channels, growing its operation to nearly a dozen channels and a well-trafficked website, CNN reported.
It has, however, seen its audience decline with competition from TikTok, as well as discount online retailers such as Shein and Temu, MLive.com reported.
The company said in its release that it has become a top seller on TikTok and is looking to expand its footprint with streaming television services and other social media platforms.
It also noted the current business atmosphere linked to the last year of tariffs imposed by the Trump administration, which have affected manufacturing and imports for a variety of retailers inside and outside the United States.
“QVC Group is uniquely positioned to compete and win in live social shopping,” David Rawlinson, the company’s president and CEO, said in the release.
“We have consolidated our HSN and QVC operations, struck new deals with critical social and media partners, and rebalanced sourcing to account for the changing tariff environment,” Rawlinson said.
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