Shares in media shopping group QVC (QVCGA) collapsed 67% in pre-market trading after it said it was getting set to file for Chapter 11 bankruptcy amid consumer spending turmoil.
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Substantial Costs from the Proceedings
In a regulatory filing, the group said that on or about April 15, 2026, it and certain subsidiaries would file for bankruptcy in the US Bankruptcy Court for the Southern District of Texas. However, it is understood that no filing has yet been made. It said it was targeting to emerge from Chapter 11 within approximately 90 days.
The group expects to enter a restructuring support agreement with certain creditors, according to the filing. It is understood that QVC had $6.6 billion in outstanding group debt as of September 30, 2025. Those figures included a credit facility that was expected to mature in October 2026.
It added that it had also incurred “significant professional fees” in preparing for its Chapter 11 and expects to amass substantial further costs throughout the proceedings. “We cannot assure that cash on hand, 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,” it said in the filing.
It said it would be delisted from the Nasdaq stock market as a result of the move.
Viewer Numbers Fall
QVC is best known for selling a huge range of items on its TV shows such as kitchen and beauty products. It claims to reach more than 200 million homes worldwide via 15 television channels. However, it has seen a decline in viewer numbers as Americans struggle to cope with a cost of living crisis made worse by the Iran war.
QVC cast some doubt about its ability to continue as a going concern when it reported its third-quarter results in November. It then reported a 6% decline in total revenue and a 61% plunge in operating income. Its supply chain has also been hit by U.S. tariffs under President Trump, particularly on imports coming from China.
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