QVC prepares for bankruptcy protection in the era of influencers, TikTok, and Temu

The owner of home shopping network pioneer QVC, which for years garnered the attention of millions of TV viewers looking for a deal on baubles and housewares, is planning to file for Chapter 11 bankruptcy protection. A filing about imminent bankruptcy protection by parent company QVC Group, which also owns HSN, formerly the Home Shopping Network, arrives as long-running TV shopping networks struggle to adapt to the rapid shift by consumers now tuning in to livestreams on TikTok, or online marketplaces like Shein. According to an annual report filed with the Securities and Exchange Commission, the company said that it intends to file for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas after reaching a restructuring agreement with creditors. Its goal is to emerge from bankruptcy protection before the summer is over, but the West Chester, Pennsylvania, company warned that its access to funding is difficult to predict. It noted significant fees and other costs in connection with the preparation for the bankruptcy protection. QVC Group has attempted to revive flagging sales for some time, which in 2024 were down almost 30% compared with its peak of more than $14 billion in 2020. Shares in QVC Group, which went for over $900 a decade ago, were trading for less than $3 a few weeks ago. Founded in 1986 by Joseph Myron Segel, QVC, which is short for Quality Value Convenience, built a following primarily of women aged 50 and older, according to Lawrence Duke, a clinical professor of marketing at Drexel University's LeBow College of Business. He said in a blog post that QVC benefited from repeat purchases by its base of viewers. But that group has aged and is shrinking, he noted. And competition has increased substantially. Consumers have increasingly dropped cable subscriptions and look less and less to scheduled programming, Duke said. Such programming has been replaced by live platforms such as TikTok Shop, where consumers can buy products touted by influencers with tens of thousands of followers on Instagram and YouTube. Low-cost marketplaces like Shein and Temu are also commanding more attention, Duke wrote. This article was provided by The Associated Press.