The American parent company of QVC and HSN, QVC Group Inc., has let the US Securities and Exchange Commission know that it was unable to submit its annual financial report on time “without unreasonable effort or expense.”
The group previously highlighted that it had $2.9 billion (£2.2 billion) in debt due in October and has admitted that the network has been grappling with viewer declines.
The company has also warned about a “substantial doubt” about its ability to continue operating.
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QVC was founded in 1986 and launched in the UK in October 1993, becoming the country’s first full-time home TV shopping channel.
Bloomberg reported in February that the group was negotiating a voluntary debt restructuring agreement with creditors, which was said to be under review as part of a Chapter 11 bankruptcy process.
That process would allow the company to restructure its debt while continuing operations, rather than going into liquidation.
QVC Group CFO Bill Wafford has confirmed that uncertainty linked to those negotiations has delayed the preparation of its financial statements, however Broadband TV News reported yesterday that the company intends to file its delayed results within 15 days.
QVC UK was originally 20% owned by Sky, before it became a wholly owned subsidiary of the US broadcaster in 2004.
In its early years, it turned over a net profit of more than £12 million and has sold various products from cooking supplies to clothing.
In 2008, QVC UK launched a multiscreen video service, which allowed Sky viewers to access three video streams via the red button: QVC Live, QVC+1, and Today’s Special Value presentation.
QVC UK also operates three channels, made up mostly of reruns from the live channel: QVC Beauty, QVC Extra, and QVC Style.
The main QVC channel broadcasts live 364 days a year from 9am to 1am, with reruns shown in the other hours and on Christmas Day.
The Herald has contacted The QVC Group for comment.