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QVC Group Exits Chapter 11 After Cutting More Than $5 Billion in Debt

New financing and leadership are meant to give the company room to invest in live social and digital commerce.

Overview

  • QVC Group completed a prepackaged Chapter 11 reorganization and formally emerged from bankruptcy on Friday with reported debt reduced from about $6.6 billion to roughly $1.3 billion.
  • Turnaround-focused funds led by Strategic Value Partners and Oaktree supplied a $600 million asset-based lending facility that restores the company’s access to working capital.
  • Longtime QVC executive Mike George returned as interim chief executive and board chair while the company searches for a permanent CEO and installed a new, digitally experienced eight-member board.
  • QVC’s common stock was approved to relist on Nasdaq under the ticker QVCG, and the company said it will accelerate efforts to grow live social shopping across social platforms, streaming apps, e-commerce sites, stores and television.
  • The reorganization clears a heavy debt burden that grew from past expansions and operational setbacks, but QVC still faces the challenge of winning younger shoppers and competing with large e-commerce platforms as it executes its pivot.