Quick overview

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QVC Group shares plummeted following the television shopping network’s announcement that it would soon file for Chapter 11 bankruptcy due to declining viewership and a significant debt load.

 

 

According to a regulatory filing made late on Wednesday, the company and a few of its direct and indirect subsidiaries intend to file in the US Bankruptcy Court for the Southern District of Texas.

QVC also stated that it anticipates entering into a restructuring support agreement with specific creditors. Shares had dropped by almost 65% on Thursday in New York.

A declining customer base and, as of late last year, QVC’s ability to continue as a going concern without making efforts to reduce its debt pile are just two of the many difficulties the company has faced.

The company stated in November that it was looking into strategic and financial options, such as a credit facility that matures in October, to address its heavy balance sheet. The company stated in its regulatory filing on Wednesday that it hopes to exit Chapter 11 in approximately ninety days. It further stated that it has paid “significant professional fees” to prepare for its Chapter 11 and anticipates incurring significant additional expenses during the process.

It stated in the document, “We cannot guarantee that cash on hand and cash flow from operations will be sufficient to continue to fund our operations and allow us to satisfy our obligations related to the Chapter 11 cases.” Chief Executive Officer David Rawlinson stated that the shopping network has attempted to lessen its penetration of goods from C during an earnings call in November.