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QVC Group Files for Chapter 11 Bankruptcy with Debt Reduction Plan
QVC Group, the parent company of shopping channels QVC and HSN, has filed for Chapter 11 bankruptcy protection. The filing includes a restructuring agreement aimed at reducing the company's debt from $6.6 billion to $1.3 billion within 90 days. Operations will continue normally with no planned layoffs, and creditors are expected to be paid in full.
Apr 18, 11:43 AM·1m read1 source
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QVC Group, the parent company of television shopping channels QVC and HSN, filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of Texas. The company announced the filing, saying it will undergo a restructuring support agreement (RSA) to reduce its debt from $6.6 billion to $1.3 billion. The goal of the RSA is to emerge from bankruptcy within 90 days.
Group reported having ample liquidity to support its business during the process.
The terms of the agreement provide for vendors, suppliers, and all other general unsecured creditors to be paid in full for goods and services. The company plans for all its businesses to operate as normal, with no planned layoffs or furloughs, while it evaluates its finances.
Strategy QVC, which stands for Quality, Value and Convenience, and HSN, the Home Shopping Network, have been staples on cable television.
The company has acknowledged the need to adapt its business model due to the popularity of shopping through social media and other technologies.
