QVC Channel Files Bankruptcy to Cut $5 Billion of Debt (1)

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.

Read More: QVC Plunges 65% as TV-Shopping Network Plans to File Bankruptcy

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.

Additional Details:

• QVC’s international operations are not included in the process
• No layoffs or furloughs are planned in connection with the restructuring support agreement; employees should fully expect to continue receiving wages and benefits without interruption
• Vendors, suppliers and all other general unsecured creditors of the filing entities will be paid in full for all goods and services
• All QVC group brands are operating as usual
• Will emerge as Reorganized QVC after RSA, targeting emergence from RSA within about 90 days

(Updates with background details and new financing from sixth paragraph.)

--With assistance from Luca Casiraghi.

To contact the reporters on this story:
Reshmi Basu in New York at rbasu18@bloomberg.net;
Libby Cherry in Frankfurt at ocherry2@bloomberg.net

To contact the editors responsible for this story:
Brian Chappatta at bchappatta1@bloomberg.net

Boris Korby, Irene García Pérez

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