WEST CHESTER, PA — QVC Group Inc. (OTCID: QVCAQ, QVCBQ, QVCPQ) last week received court approval for its Chapter 11 restructuring plan, clearing the way to reduce its debt by about $5.3 billion and emerge from bankruptcy with new financing as it pursues a turnaround of its live shopping business.
The U.S. Bankruptcy Court for the Southern District of Texas confirmed the retailer’s prepackaged reorganization plan, the company reported. QVC Group said it expects to exit the court-supervised process after satisfying customary closing conditions.
The restructuring will reduce the company’s total debt from approximately $6.6 billion to $1.325 billion, substantially improving its balance sheet as it seeks to expand its presence across streaming platforms, social media, e-commerce sites, television and retail channels.
QVC Group said all vendor claims will either be paid in full or reinstated under the confirmed plan, allowing suppliers to emerge from the bankruptcy process without impairment.
The reorganized company also expects to have access to a new $600 million revolving credit facility to support working capital and general corporate purposes after it exits Chapter 11.
“Today marks a significant turning point for our Company and positions us to emerge from Chapter 11 ready to win in live social shopping,” President and Chief Executive Officer David Rawlinson said. He added that the lower debt burden would allow the company to focus on long-term growth and customer experience.
The restructuring will also eliminate the company’s existing preferred and common shares. Subject to regulatory and exchange approvals, newly issued common stock is expected to begin trading on a national securities exchange under the ticker symbol “QVCG” after the company emerges from bankruptcy.
QVC Group continued operating as a publicly traded company throughout the restructuring proceedings.
Additional information about the restructuring is available at forward.qvcgrp.com. Court filings related to the Chapter 11 proceedings are available through the company’s claims agent, Kroll, at https://restructuring.ra.kroll.com/QVC.
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