|
A
filing about imminent bankruptcy protection by parent company
QVC Group, which also owns HSN, formerly the Home Shopping
Network, arrives as long-running TV shopping networks struggle
to adapt to the rapid shift by consumers now tuning in to
livestreams on TikTok, or online marketplaces like Shein.
According to an annual report filed with the Securities and
Exchange Commission this week, the company said that it intends
to file for Chapter 11 bankruptcy protection in the U.S.
Bankruptcy Court for the Southern District of Texas after
reaching a restructuring agreement with creditors.
Its goal is to emerge from bankruptcy protection before the
summer is over, but the West Chester, Pennsylvania, company
warned that its access to funding is difficult to predict. It
noted significant fees and other costs in connection with the
preparation for the bankruptcy protection.
“We cannot assure that cash on hand, cash flow from operations
will be sufficient to continue to fund our operations,” it
wrote.
QVC Group has attempted to revive flagging sales for some time,
which in 2024 were down almost 30% compared with its peak of
more than $14 billion in 2020. Shares in QVC Group, which went
for over $900 a decade ago, were trading for less than $3
earlier this week.
Founded in 1986 by Joseph Myron Segel, QVC, which is short for
Quality Value Convenience, built a following primarily of women
aged 50 and older, according to Lawrence Duke, a clinical
professor of marketing at the university’s LeBow College of
Business. He said in a blog post that QVC benefited from repeat
purchases by its base of viewers. But that group has aged and is
shrinking, he noted.
And competition has increased substantially.
Consumers have increasingly dropped cable subscriptions and look
less and less to scheduled programming, Duke said. Such
programming has been replaced by live platforms such as TikTok
Shop, where consumers can buy products touted by influencers
with tens of thousands of followers on Instagram and YouTube.
Low-cost marketplaces like Shein and Temu are also commanding
more attention, Duke wrote.
QVC has significantly expanded its digital sales and expanded
its presence on social media, but those maneuvers have fallen
short.
QVC "competes in a crowded marketplace where attention is
fragmented and switching costs are low,” Duke said.
All contents © copyright 2026 Associated Press. All rights reserved
|
|
