Amid ongoing efforts to manage $6.6 billion in debt, West Chester-based QVC Group has announced plans to file for Chapter 11 bankruptcy protection, writes Jeff Blumenthal for the Philadelphia Business Journal.
The company disclosed in a 10-K filing with the U.S. Securities and Exchange Commission that it intends to file for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. This will most likely be this week, while it enters into a restructuring support agreement with certain creditors.
QVC Group said it plans to file several “first day” motions to continue uninterrupted operations during the bankruptcy process. The parent company of QVC and HSN is targeting an exit from Chapter 11 within 90 days but said it cannot provide assurances about the timing.
In the filing, the company said there is no guarantee of a successful emergence from bankruptcy, warning that “in which case we would be forced to cease operations.”
Expecting a delisting notice from the Nasdaq Stock Market, QVC Group said it would continue trading its shares on an over-the-counter market.
The news sent the company’s stock down more than 71 percent, from $2.55 at Wednesday’s close to 75 cents per share.
Read more about QVC Group filing for Chapter 11 and their plan for restructuring in the Philadelphia Business Journal.
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