QVC Group Files for Chapter 11 Bankruptcy, Shares Down 65%
QVC Group disclosed last night that it intends to commence Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas. QVC intends to operate its businesses as a debtor-in-possession. VC Group is targeting emergence from the Chapter 11 within 90 days. The company explained, "We face uncertainty regarding the adequacy of our liquidity and capital resources. In addition to the cash requirements necessary to fund ongoing operations, we have incurred significant professional fees and other costs in connection with preparation for the Chapter 11 Cases and expect that we will continue to incur significant professional fees and costs throughout our Chapter 11 Cases. We cannot assure that cash on hand, cash flow from operations will be sufficient to continue to fund our operations and allow us to satisfy our obligations related to the Chapter 11 Cases until we are able to emerge from the Chapter 11 Cases." Shares of QVC Group are down 65%, or $1.67, to 88c in morning trading.
