QVC Group has commenced voluntary Chapter 11 proceedings to facilitate its restructuring and reduce debts.

The live social shopping company, which owns brands such as QVC, HSN, Ballard Designs and Frontgate, has signed a restructuring support agreement (RSA) with its lenders for a “comprehensive prepackaged financial restructuring plan”. 

Under the RSA, QVC’s principal amount of debt will be reduced from approximately $6.6 billion to $1.3 billion, and the newly deleveraged company will emerge as Reorganized QVC, Inc. 

All brands will operate as usual throughout the process. The company said it has ample liquidity to support the business, while the RSA will ensure vendors and suppliers are paid in full for all goods and services.  

There are no planned layoffs or furloughs in connection with the financial restructuring process, with all team members expected to continue receiving their wages and benefits. 

For all brands, return policies and procedures remain the same, while gift cards and credits remain valid. All retail locations remain open and operating on normal schedules.

The company added that the terms of the RSA will aid its continued transformation under the ‘Win Growth Strategy’ to drive long-term growth and profitability.

“We are seeing early momentum in our Win Growth Strategy,” said David Rawlinson, president and CEO of QVC Group. 

“Over the past year, we have become a top seller on TikTok Shop US while expanding our business on streaming and other platforms. 

“We have consolidated our HSN and QVC operations, struck new deals with critical social and media partners, and rebalanced sourcing to account for the changing tariff environment,” Rawlinson added.

The company expects to emerge from Chapter 11 within approximately 90 days.

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

Last April, the company cut approximately 900 staff as part of its reorganization.