QVC Group, Whose Networks Popularized Shopping On TV, Files For Chapter 11 Bankruptcy

QVC Group, whose networks pioneered the concept of live TV shopping in the 1980s and built it into a mainstay of the late-20th century media business, has filed for Chapter 11 bankruptcy.

The voluntary filing in the U.S. Bankruptcy Court for Southern Texas was cited by company management as a way to help it transition from TV to live social media retailing via a restructuring program. The move is expected to provide “a more appropriate capital structure,” QVC Group CEO David Rawlinson said. Debt is projected to be reduced to $1.3 billion from $6.6 billion.

The company said its portfolio, which includes QVC, HSN, and Cornerstone Brands, is operating as usual across channels and platforms during the bankruptcy process, which is expected to wrap up this summer. QVC said it has “ample liquidity” to keep the business running, fulfill restructuring obligations to vendors, suppliers and other unsecured creditors, and continue paying employees.

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