The company that operates television shopping channels QVC and HSN has declared Chapter 11 bankruptcy protection as traditional home shopping networks face mounting challenges from modern digital competitors.
QVC Group submitted its bankruptcy petition to the U.S. Bankruptcy Court for the Southern District of Texas as these established TV retail giants find themselves losing customers to social media shopping on platforms like TikTok and online retailers such as Shein.
The bankruptcy filing excludes the company’s overseas operations, and executives emphasized they maintain more than $1 billion in available cash with sufficient resources to fulfill all business commitments.
According to QVC Group, all brand operations continue without interruption, including customer services in the United Kingdom, Germany, Japan, and Italy. The company pledged uninterrupted service to customers through all QVC, HSN, and Cornerstone Brands channels and platforms.
“Bankruptcy may allow the necessary restructuring to give QVC the room to operate with better financials. However, it does not solve the need to reinvent and become relevant,” said Neil Saunders, managing director of GlobalData, in a statement.
The company has been working to reverse declining revenues for several years, with 2024 sales dropping nearly 30% from their 2020 high of over $14 billion. Stock prices tell a similar story of decline, falling from more than $900 per share ten years ago to under $3 this week.
Company officials expect to complete the bankruptcy restructuring process within approximately 90 days.
