Television shopping network QVC Group filed for bankruptcy Thursday as part of a plan to cut more than $5 billion of debt, as declining viewership and a shift to online retail weighed on sales and squeezed margins.
The company filed for Chapter 11 protection in the Southern District of Texas, part of a prearranged plan that will reduce its debt load to roughly $1.3 billion from about $6.6 billion and allow it keep operating, according to a statement. Vendors and other unsecured creditors are expected to be paid in full or have their claims left unchanged. The company said it had more than $1 billion in cash at the end of 2025 to fund ongoing operations.
QVC has faced a range of challenges in recent years, from a shrinking customer base to growing competition from digital rivals. Tariffs imposed by the Trump administration also impacted its supply chain, and the network has worked to reduce its exposure to goods from China. In November, the firm said it was exploring financial and strategic options to tackle its troubled balance sheet.
The company owns the television channels QVC and HSN, formerly known as the Home Shopping Network, which are famous for selling everything from kitchen appliances to luggage.
QVC’s brands have been running for nearly 50 years, with HSN first starting radio broadcasting to consumers in 1977. The company sought to adapt to the rise of cable television with stakes sold to operators in exchange for running the channel.
Formerly controlled by Liberty Media Corp., the two companies were split off in 2011. In recent years, efforts to grow QVC’s social media presence have been hampered by hefty debt payments.
After the bankruptcy filing, the company plans to have access to a $300 million debtor-in-possession facility, according to court documents.
As part of the restructuring, holders of notes issued by QVC or of its revolving-credit facility will receive a portion of new six-year loans and notes. QVC has also launched a process to raise an asset-based lending facility of up to $750 million both from existing and new lenders, the documents show.
Basu and Cherry write for Bloomberg.
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