The parent company behind the well-known shopping channels QVC and HSN has filed for Chapter 11 bankruptcy.
QVC Group, which filed in the U.S. Bankruptcy Court for the Southern District of Texas, announced the filing in a press release Thursday, saying the company will undergo a Restructuring Support Agreement (RSA) to reduce its debt from $6.6 billion to $1.3 billion.
The goal of the RSA is to emerge from bankruptcy within 90 days.
“The Company has ample liquidity to support the business and, importantly, the terms of the RSA provide for vendors, suppliers and all other general unsecured creditors of the filing entities to be paid in full for all goods and services,” the press release reads.
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During this time, QVC Group plans for all of its businesses to operate as normal, with no planned layoffs or furloughs as it continues to evaluate its finances.
Both QVC, which stands for Quality, Value and Convenience, and HSN, or the Home Shopping Network, have been late-night staples on cable television, although with the popularity of shopping through social media and other technology, the company has acknowledged needing to change its business model.
David Rawlinson, president and chief executive officer of QVC Group, said in the press release he is confident in the company’s ability to recover from the current setback based on the progress it has seen so far.
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“QVC Group is uniquely positioned to compete and win in live social shopping, and we are seeing early momentum in our WIN Growth Strategy,” he said. “Over the past year, we have become a top seller on TikTok Shop U.S. while expanding our business on streaming and other platforms. We have consolidated our HSN and QVC operations, struck new deals with critical social and media partners, and rebalanced sourcing to account for the changing tariff environment.”
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“With the support of our lenders and a more appropriate capital structure, we believe we can deliver on our WIN Growth Strategy,” Rawlinson added.
QVC was purchased by billionaire John Malone in 2003 for $7.9 billion. The brand later acquired HSN in 2017 for $2.1 billion.
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