Dive Brief:
- QVC Group has exited Chapter 11 bankruptcy, the company announced in a Thursday press release. Its debt has been reduced by over $5 billion, and the company has access to a new $600 million asset-based lending facility.
- As part of the restructuring, CEO David Rawlinson stepped down from the top role. He is succeeded by Mike George as interim chief executive officer and board chair, effective immediately.
- QVC Group also announced the appointment of a new board of directors. The company has also been approved for trading on the Nasdaq under the ticker QVCG.
Dive Insight:
QVC Group exited Chapter 11 in less than four months.
The parent company of QVC and HSN headed to bankruptcy court this past spring with a restructuring plan in order to expedite its exit.
The company cited changing consumer shopping habits and TV cord-cutting as reasons for the erosion in cash flow that led to its bankruptcy.
QVC Group originally received approval on its prepackaged financial restructuring plan from the U.S. Bankruptcy Court for the Southern District of Texas in mid-July.
Interim CEO George was previously the CEO of QVC Group, formerly Qurate Retail Group, for nearly 16 years.
“His deep understanding of QVC Group's business, customers and culture, combined with his extensive leadership experience, positions him well to lead the company during this transition period,” QVC Group said in its announcement.
Additionally, the company announced the appointment of a new board of directors, which includes George and seven other leaders: David Boon, CEO of The Michaels Companies; Nicolas Le Bourgeois, a former leader of TikTok Shop and former Amazon executive; Jason Horowitz, former global head of marketing and media at Mattel; James Marcum, former CEO of David’s Bridal; Ann Mather, former CFO of Pixar; Richard Mayfield former CFO of Walmart International; and Jonathan Zinman, former managing director at Silver Point Capital.
During his time as CEO, Rawlinson led the launch of the company’s Win Growth Strategy, which focused on evolving the business into a live social shopping company.