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QVC Group, owner of HSN and QVC, has received approval on its prepackaged financial restructuring plan from the U.S. Bankruptcy Court for the Southern District of Texas.
That plan was supported by a majority of the company’s lenders and noteholders, according to a Wednesday announcement from the company.
As a result, when it emerges from the Chapter 11 bankruptcy process, the company’s debt will be reduced from around $6.6 billion to $1.3 billion. All vendors will have their claims paid in full or reinstated.
“Today marks a significant turning point for our Company and positions us to emerge from Chapter 11 ready to win in live social shopping,” David Rawlinson, CEO of QVC Group, said in a statement. “With significantly less debt, we can focus on what matters most — creating uniquely inspiring live social shopping experiences for our customers.”
When it exits bankruptcy, the company expects to have access to a new $600 million line of credit to support its working capital needs.
Additionally, QVC Group anticipates that it will be listed on a national securities exchange under the ticker symbol QVCG.
Upon filing for bankruptcy in April, QVC Chief Administrative Officer and Chief Financial Officer Bill Wafford said the company had work to do to accommodate changing shopping behaviors as attention wanes from traditional televised shopping.
The company has been pushing a model that incorporates live social shopping, including launching a 24/7 livestream on TikTok Shop.
“The future of shopping is live, social and personal, and QVC is ready to lead the way,” Krystyna Taheri, senior vice president of social commerce at QVC, said in a statement last month as the company celebrated its 40th anniversary with a TikTok Shop event.
QVC Group, once going by the name Qurate Retail Group, first introduced its WIN transformation strategy at the end of 2024, around the same time the company stated it was evolving into a live social shopping company.
“We will continue to build on the success we’ve already achieved under our WIN Growth Strategy and capture future opportunities for long-term growth,” Rawlinson said on Wednesday.