QVC prepares for bankruptcy protection in the era of influencers, TikTok, and Temu

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Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. garner / ˈgɑr nər / (v.) – to collect, get, or gather something, like information or support
    Example:

    Her unique fashion style garnered a lot of attention from photographers during the event.


  2. imminent / ˈɪm ə nənt / (adj.) – happening very soon or likely to happen very soon
    Example:

    The firefighters rushed into the burning building to save the people from imminent danger.


  3. restructuring / ˌriˈstrʌk tʃɚ ɪŋ / (n.) – the act of changing the way a company or organization is organized or financed
    Example:

    The airline announced a major restructuring plan to reduce its costs after a difficult year.


  4. tout / taʊt / (v.) – to tell people that something is very good or important so that they will buy or support it
    Example:

    Healthy eating and regular exercise are touted by fitness experts as the best ways to lose weight and stay healthy.


  5. influencer / ˈɪn flu ən sər / (n.) – a person who has the power to change how other people think or what they buy, usually because they are famous on social media platforms
    Example:

    Many people want to become travel influencers so they can travel for free in exchange for promoting hotels, airlines, and travel activities on social media.


Article

Read the text below.

The owner of home shopping network pioneer QVC, which for years garnered the attention of millions of TV viewers looking for a deal on baubles and housewares, is planning to file for Chapter 11 bankruptcy protection.


A filing about imminent bankruptcy protection by parent company QVC Group, which also owns HSN, formerly the Home Shopping Network, arrives as long-running TV shopping networks struggle to adapt to the rapid shift by consumers now tuning in to livestreams on TikTok, or online marketplaces like Shein.


According to an annual report filed with the Securities and Exchange Commission, the company said that it intends to file for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas after reaching a restructuring agreement with creditors.


Its goal is to emerge from bankruptcy protection before the summer is over, but the West Chester, Pennsylvania, company warned that its access to funding is difficult to predict. It noted significant fees and other costs in connection with the preparation for the bankruptcy protection.


QVC Group has attempted to revive flagging sales for some time, which in 2024 were down almost 30% compared with its peak of more than $14 billion in 2020. Shares in QVC Group, which went for over $900 a decade ago, were trading for less than $3 a few weeks ago.


Founded in 1986 by Joseph Myron Segel, QVC, which is short for Quality Value Convenience, built a following primarily of women aged 50 and older, according to Lawrence Duke, a clinical professor of marketing at Drexel University’s LeBow College of Business. He said in a blog post that QVC benefited from repeat purchases by its base of viewers. But that group has aged and is shrinking, he noted. And competition has increased substantially.


Consumers have increasingly dropped cable subscriptions and look less and less to scheduled programming, Duke said. Such programming has been replaced by live platforms such as TikTok Shop, where consumers can buy products touted by influencers with tens of thousands of followers on Instagram and YouTube. Low-cost marketplaces like Shein and Temu are also commanding more attention, Duke wrote.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Do you sometimes shop from either a home shopping TV show or an influencer’s livestream? Why or why not? Of the two, which do you prefer more? Why? Discuss.
  • QVC, a home shopping network pioneer, is planning to file for Chapter 11 bankruptcy, but it hopes to emerge from bankruptcy before the summer is over. If you were a decision maker at QVC, what would you suggest to emerge from bankruptcy? Discuss.

Discussion B

  • Duke said that QVC succeeded by building a “following primarily of women aged 50 and older” and benefited from “repeat purchases” by this base. In your opinion, what are the advantages of focusing all your marketing efforts on one specific group of people rather than trying to sell to everyone? What are the disadvantages of this approach? Discuss.
  • If you were to become a business owner today, would you prefer to sell to a specific group of customers or a wide range of customers? Why? If you chose a specific group, how would you prevent your business from failing if that group’s habits or interests suddenly changed? Discuss.