QVC Plans Bankruptcy Filing as Consumers Dump Cable and Shop Online

The corporate owner of onetime TV shopping giant QVC says it is planning to file for Chapter 11 bankruptcy protection as shoppers are gravitating to social media and other online platforms for shopping.QVC Group revealed the plans to restructure in a required filing with the Security and Exchange Commission. The company also owns HSN, formerly known as the Home Shopping Network, after buying it in 2017.The company says it will file in the United States Bankruptcy Court for the Southern District of Texas and intends to continue to operate. “Although no assurance can be made as to a potential emergence date, QVC Group is targeting emergence from the Chapter 11 Cases within approximately 90 days,” the filing states.QVC says it has a very loyal customer base with approximately 92 percent of its sales coming from repeat customers. The company says about 75 percent of its customers are women over the age of 50. It says it needs to attract a new and more diverse customer base to return to profitability.That might be a tall order. Unlike the company’s early days, shopping from home is a rapidly evolving and highly competitive retail business environment.Consumers are dropping cable television packages and younger shoppers are using TikTok shops and influencers on social media platforms. Large department stores, specialty shops, e-commerce retailers, and wholesale clubs are all also competing for shoppers.The company said tariff increases and higher shipping costs have added financial pressure on the company.The company announced a turnaround plan in 2022 to stabilize its operations that included reducing inventory and layoffs. A 2024 strategy attempted to grow the company through reaching customers through new platforms. It also closed a facility at St. Petersburg, Florida and relocated those operations to its headquarters in suburban Philadelphia.QVC has nearly 17,000 full-time and part-time employees who handled approximately 70 million customer calls, shipped approximately 182 million units globally and served approximately 10.3 million individual customers. The company didn’t indicate it would make any staff reductions due to the bankruptcy filing.QVC Group’s stock price, which closed at an all-time high of $882 in August 2015, was trading at less than $1 on Thursday after the bankruptcy plan became public. The company says it expects to be delisted from the Nasdaq stock market because of the bankruptcy.

QVC Plans Bankruptcy Filing as Consumers Dump Cable and Shop Online

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