QVC has filed for bankruptcy as the long-established global teleshopping company struggles for survival. Could UK viewers be affected?
Changes in shopping habits and the need to invest in new digital alternatives have resulted in QVC amassing over $6 billion in debt. Bankruptcy proceedings which commenced at the end of last week aim to reduce the debts down to “just” $1.3 billion.
In the meantime, all of its international channels continue as normal. QVC expects to exit bankruptcy proceedings later this year with the creation of a company dubbed ‘Reorganized QVC, Inc’, which would act as the new ultimate parent company for international subsidiaries.
What has QVC said about its UK/European operations?
QVC stresses that subsidiaries outside of the US are not part of the bankruptcy proceedings. The only exception is a non-operating subsidiary in Luxembourg.
The company’s global business activities continue as usual – including customer-facing activities in the UK, Germany, Japan, and Italy. Payments to suppliers and vendors are being made as normal in all these regions.
As a result, QVC UK is expected to continue broadcasting, selling goods and services as normal.
How QVC’s UK channel is linked to the US parent company
The licence holder for QVC’s UK channels is a private unlimited company called QVC UK.
QVC UK is in turn controlled by another company called QVC Britain.
QVC Britain in turn is owned by QVC UK Holdings Limited.
Finally, QVC UK Holdings Limited is owned by QVC Group, Inc of Delaware, USA – the stricken US parent company. The structure would easily allow a change at parent company level (if the worst happened) without taking down the UK company.
How can I make sure I get my money back if the worst happens?
While there’s no suggestion at this stage that QVC in the UK will be affected, there are some general tips that are valid for all online or telephone purchases, no matter the company:
In the UK, purchases between £100 and £30,000 made via credit card are protected by Section 75 of the Consumer Credit Act. A Section 75 claim would allow you to receive your money back.
Debit card payments offer less protection. However, you may be able to claim for a refund under a voluntary scheme called ‘chargeback’.
Despite the proceedings and delay in publishing its financial reports, QVC is optimistic for the future. It’s been focusing on developing its offer on TikTok and across other streaming platforms. But with audiences finding different ways to buy goods, it does raise a long-term question about its traditional linear channels.
QVC’s 33 year history in the UK
In 1993, QVC became the first 24 hour teleshopping channel in the UK. It was originally operated as a joint venture with Sky. In 2002, QVC joined the UK’s digital terrestrial television (DTT) service, securing the prime channel 16 slot ahead of the launch of Freeview in October 2002. In 2004, Sky sold its stake in the business. Four years later it launched a red button service. Following the conclusion of digital switchover in 2012, QVC is available to almost every UK household either via TV or another device.
It has outlived most of its competitors – this month marks the 12th anniversary of the collapse of sit-up TV, the company behind Bid, Price Drop and Speed Auction TV. Its biggest UK rival, Ideal World collapsed into administration in 2023 before being saved at the last minute.
Various smaller teleshopping channels have also struggled to stay on air. Even larger companies have struggled to master teleshopping. Argos operated a TV channel which lasted less than two full years between 2011-2013. ITV’s own attempt, Freeview channel “The Store” lasted a little longer during the 2010s.
By: Marc Thornham | Image: QVC [screenshot]