QVC Plans Bankruptcy Filing

The owner of home shopping network pioneer QVC, which for years garnered the attention of millions of TV viewers looking for a deal on baubles and housewares, is planning to file for Chapter 11 bankruptcy protection. Long-running TV shopping networks are struggling to adapt to the rapid shift by consumers now tuning in to livestreams on TikTok, or online marketplaces like Shein, the AP reports. According to an annual report filed with the Securities and Exchange Commission this week, QVC Group, which also owns HSN, formerly the Home Shopping Network, intends to submit a Chapter 11 filing in the US Bankruptcy Court for the Southern District of Texas after reaching a restructuring agreement with creditors.

The goal is to emerge from bankruptcy protection before the summer is over, but the Pennsylvania company warned that its access to funding is difficult to predict. It noted significant fees and other costs in connection with the preparation for the bankruptcy protection. "We cannot assure that cash on hand, cash flow from operations will be sufficient to continue to fund our operations," it wrote. QVC Group has attempted to revive flagging sales for some time, which in 2024 were down almost 30% compared with its peak of more than $14 billion in 2020. Shares in QVC Group, which went for over $900 a decade ago, were trading for less than $3 earlier this week. The company has significantly expanded its digital sales and expanded its presence on social media, but those maneuvers have fallen short.