QVC Group, fka Qurate Retail, is filing for Chapter 11 in the US Bankruptcy Court for the Southern District of Texas, according to its Form 10-K released on April 15.
QVC made the disclosure after its net leverage ratio exceeded 4.5x, resulting in a breach of its credit facility’s financial covenant and allowing those lenders to accelerate and demand repayment of the loans, the 10-K said.
Hoping to emerge from bankruptcy within 90 days of filing as a going concern, QVC added that it is seeking to enter into a restructuring support agreement with “certain” creditors.
The company had $5.046 billion in debt as of Dec. 31, 2025, consisting of:
- $2.9 billion outstanding under its $3.25 billion revolver due October 2026
- $44 million of 4.75% senior secured notes due 2027
- $72 million of 4.375% senior secured notes due 2028
- $605 million of 6.875% senior secured notes due 2029
- $400 million of 5.45% senior secured notes due 2034
- $300 million of 5.95% senior secured notes due 2043
- $225 million of 6.375% senior secured notes due 2067
- $500 million of 6.25% senior secured notes due 2068
In addition, QVC noted the possibility that the court could convert the case to a Chapter 7 liquidation, which may result in “significantly smaller” recoveries for creditors due to distressed sales, increased administrative expenses, and additional claims.
Turning to operations, full-year 2025 net revenue fell 7.8% to $8.29 billion, primarily due to fewer units shipped in its core US programming business, QxH. The company’s operating loss steepened to $2.02 billion, from $770 million in 2024, driven by a large goodwill impairment charge and shrinking revenue. Adjusted OIBDA also declined by $288 million to $810 million. The company ended 2025 with cash and equivalents of $1.49 billion.
The 10-K containing the Chapter 11 disclosure was delayed due to ongoing negotiations between QVC and creditors. QVC said it needed additional time to “compile and analyze certain information and documentation and finalize certain disclosures.”
In August 2025, S&P Global Ratings downgraded QVC to CCC, from CCC+, citing a rising risk of a balance sheet restructuring because of the impending debt maturity. S&P also downgraded the company’s secured notes to CCC, from B-, and lowered its unsecured notes to CC, from CCC-.
QVC is a video commerce and online retailer reaching consumers through TV networks QVC and HSN, digital streaming and social platforms. Current corporate ratings are CCC/Caa3, with a negative outlook.
Featured image by Krisanapong Detraphiphat/Getty Images
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