QVC’s US parent company files for bankruptcy

QVC Group, the US parent company of TV and social shopping firm QVC, has filed for bankruptcy after entering into a restructuring support agreement (RSA) with shareholders that hold a significant majority of its outstanding funded debt.

The deal includes a prepackaged financial restructuring plan designed with the intention of reducing debt and strengthening the company’s financial position as part of its ‘Win Growth Strategy’.

In order to move forward with this plan, the company and certain US subsidiaries, including QVC, Inc., have commenced voluntary Chapter 11 proceedings in the US Bankruptcy Court for the Southern District of Texas.

The RSA will allow the group’s debt to reduce from approximately 6.6 billion dollars to 1.3 billion dollars as it emerges as a newly deleveraged company, Reorganised QVC, Inc. The company is expecting to emerge from the financial restructuring within 90 days.

The group said its brands, including all channels and platforms for QVC, HSN, and Cornerstone Brands, will continue to operate as usual supported by “ample liquidity”. Vendor, supplier and unsecured creditor payments will be made possible via the RSA.

QVC Group’s international operations, including its customer-facing operations in the UK, Germany, Japan, and Italy, are not included in the process, and will remain operational.

QVC further confirmed that no layoffs of furloughs were planned in connection with the financial restructuring. Employees are expected to continue receiving wages and benefits uninterrupted.

The company said it would continue to focus on rolling out its three-year Win Growth Strategy, which has focused on pivoting the business towards emerging forms of video shopping, namely via social media and streaming platforms such as TikTok Shop, where QVC has become a top seller in the US.

The shift came as a response to the structural decline of traditional cable television, which had historically served at the foundation of QVC’s business model. As a result, the group has repositioned as a live social shopping firm, a strategy it says has already shown measurable results as customer numbers grow across new shopping formats.

The group has further consolidated its HSN and QVC operations, struck new deals with social and media partners, and rebalanced sourcing to account for the changing tariff environment, its president and CEO, David Rawlinson, said.

He further expressed appreciation for support from vendors, business partners, and team members, adding: “This process will allow for QVC Group to have the financial structure it needs to accelerate our return to growth.”