QVC Group has received court approval of its financial restructuring plan, paving the way for the company to emerge from bankruptcy with less debt.

Following the ruling, the reorganized company will emerge from the court-supervised process once the remaining customary conditions to closing are satisfied. 

The company’s total debt will be reduced from approximately $6.6 billion to $1.325 billion, and all vendors will have their claims paid in full or reinstated. 

QVC expects the reorganized entity to have greater financial flexibility to pursue long-term growth and profitability.

“With significantly less debt, we can focus on what matters most – creating uniquely inspiring live social shopping experiences for our customers,” said David Rawlinson, president and CEO of QVC Group.

“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.” 

In connection with the emergence, the company will have access to a new $600 million line of credit to support its capital needs.

All of QVC’s existing shares of preferred and common stock will be cancelled pursuant to the plan. The reorganized company will remain a publicly traded company, but with newly-issued shares under the symbol “QVCG”.

QVC Group is a live social shopping company headquartered in West Chester, Pennsylvania. It manages retail brands including QVC, HSN, Ballard Designs, Frontgate, Garnet Hill, and Grandin Road.

The company commenced voluntary Chapter 11 proceedings in April amid mounting debts. 

All brands have been operating as usual throughout the process, with team members remaining unaffected.

QVC’s subsidiaries and entities outside of the US were not included in the process. Its global business operations are continuing as normal – including customer-facing operations in the UK, Germany, Japan, and Italy.