QVC Group, the parent company of the home shopping TV brands HSN and QVC, will file for Chapter 11 bankruptcy protection.
The company disclosed the plan in a filing with the Securities and Exchange Commission.
“As of the date of the petition, we intend to operate our business as a debtor in possession under the jurisdiction of the bankruptcy court in accordance with the applicable provisions of the Bankruptcy Code and the Bankruptcy Court Orders,” the filing says. “The QVC Group and QVC, Inc. intend to seek approval from the bankruptcy court for a variety of ‘day one’ proposals to continue our normal course operations through the Chapter 11 cases. Although no assurance can be given as to a potential emergence date, the QVC Group aims to emerge from the Chapter 11 cases within approximately 90 days.”
Details regarding the bankruptcy are still to be determined, although Chapter 11 allows the company to continue operating while it restructures.
A year ago, the company laid off 900 employees while consolidating its operations and planning a shift to live shopping on social media platforms like TikTok, which has emerged as a next-generation home for this type of content.
“Linear TV is a very attractive and profitable platform and remains our cornerstone. However, with traditional TV in decline and the mix of video platforms capturing a greater share of customer attention, we must accelerate our expansion beyond TV to grow,” the company said at the time.
Platforms like TikTok Shop and shopping creators YouTube and Instagram have stolen a lot of thunder, with the help of cheap products that can be shipped from Asia and other markets.
The company also pursued other content deals for programming that could complement its shopping offerings, such as a deal to carry pickleball games.
However, the bankruptcy marks the end of an era for one of the strongest brands of the cable TV generation.
QVC Group is part of cable tycoon John Malone’s media empire, with the billionaire buying the brand for $7.9 billion in 2003 and later joining the Home Shopping Network in 2017.
