New York — QVC, the home shopping TV network that has been a staple for almost four decades, has filed for bankruptcy.
The channel's parent company, QVC Group, announced Thursday that it has voluntarily entered Chapter 11 proceedings in an effort to slash its debt from $6.6 billion to $1.3 billion.
Based in West Chester, Pennsylvania, the network sells everything from kitchen appliances to a Martha Stewart clothing collection. However, it has struggled in recent years from a surge in online shopping and livestreaming apps, like TikTok and Whatnot; as well as President Donald Trump's tariffs and the decline of viewership on cable television.
CEO David Rawlinson said in a press release that the "process will allow for QVC Group to have the financial structure it needs to accelerate our return to growth."
The company has sufficient money to keep operating as it navigates the bankruptcy proceedings and expects to complete the process within 90 days. No layoffs or furloughs are planned, and vendors will be paid.
QVC, which stands for Quality, Value, Convenience, started in 1986, helping pioneer the live-shopping format. In 2017, QVC bought its older rival, Home Shopping Network and merged the operations. Together, they operate nearly a dozen TV channels and a website.
In the release, QVC touts its digital growth with its streaming channels and said it has become a top seller on TikTok.
"A stronger balance sheet, together with revenue growth from social and streaming, is expected to enable QVC Group to stabilize and return to sustainable growth over time," the company said.
Shares of QVC Group fell nearly 70% on Thursday.
