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QVC, the home shopping TV network that has been a staple for almost four decades, has filed for bankruptcy.The channel’s parent company, QVC Group, announced Thursday that it has voluntarily entered Chapter 11 proceedings in an effort to slash its debt from $6.6 billion to $1.3 billion. Based in West Chester, Pennsylvania, the network sells everything from kitchen appliances to a Martha Stewart clothing collection. However, it has struggled in recent years from a surge in online shopping and live-streaming apps, like TikTok and Whatnot; as well as President Donald Trump’s tariffs and the decline of viewership on cable television. CEO David Rawlinson said in a press release the “process will allow for QVC Group to have the financial structure it needs to accelerate our return to growth.” The company has sufficient money to keep operating as it navigates the bankruptcy proceedings, and expects to complete the process within 90 days. No layoffs or furloughs are planned and vendors will be paid. QVC, which stands for Quality, Value, Convenience, started in 1986, helping pioneer the live-shopping format. In 2017, QVC bought its older rival, Home Shopping Network (HSN), and merged the operations. Together, they operate nearly a dozen TV channels and a website. “A stronger balance sheet, together with revenue growth from social and streaming, is expected to enable QVC Group to stabilize and return to sustainable growth over time,” the company said. Shares of QVC Group ( QVCGA ) fell nearly 70% on Thursday. Article originally attributed from CNN.com
Why Your Mortgage and Car Payments Are “Invisible” After Bankruptcy
i Robot, the maker of the Roomba vacuum cleaner, filed for bankruptcy protection on Sunday, saying that it would go private after being bought by Picea Robotics, its primary manufacturer. The company, which raised concerns about staying in business in March, filed for Chapter 11 protection in Delaware bankruptcy court as it grapples with increased competition from lower-priced rivals and new U.S. tariffs. iRobot generated about $682 million in total revenue in 2024, but its profits have been eroded by competition from Chinese rivals like Ecovacs Robotics. iRobot remains dominant in key markets like the U.S. and Japan, but competition forced it to lower its prices and make substantial investments in technological upgrades, according to bankruptcy court filings. New U.S. tariffs have also harmed the company, especially a 46% levy on imports from Vietnam, where iRobot manufactures vacuum cleaners for the U.S. market. The tariffs raised the company’s costs by $23 million in 2025, while making it more difficult to plan for the future, according to iRobot’s court filings. The company, which was the target of a thwarted $1.4 billion buyout by Amazon.com, has about $190 million in debt. The debt stems from a 2023 loan that iRobot used to refinance its operations, while a European competition investigation stalled the Amazon deal. After the Amazon deal fell apart and iRobot fell behind on payments to Picea, the China-based manufacturer acquired iRobot’s debt from a group of investment funds managed by the Carlyle Group, according to court documents. Under iRobot’s bankruptcy plan, Picea will take 100% of the company’s equity and cancel the $190 million remaining on the 2023 loan, as well as an additional $74 million debt that iRobot owes to Picea under the companies’ manufacturing agreement. Other creditors and suppliers will be paid in full, according to iRobot’s bankruptcy court filings. iRobot said the bankruptcy is not expected to disrupt its app functionality, customer programs, global partners, supply chain relationships or product support. The loss-making company was valued at $3.56 billion in 2021, driven by pandemic-fueled demand, but it is now worth around $140 million, according to data compiled by LSEG. iRobot was founded in 1990 by three Massachusetts Institute of Technology roboticists. It initially focused on defense and space work before debuting the Roomba robotic vacuum in 2002. The Roomba was an immediate success and it holds about 42% of the U.S. market share and 65% of the Japanese market share for robotic vacuum cleaners, according to the company. iRobot is headquartered in Bedford, Massachusetts, and it has 274 employees, according to court documents. Article credited from CNBC.com
The share of subprime borrowers at least 60 days behind on their auto loans rose to 6.65% in October, the highest level on record, according to Fitch Ratings data going back to the early 1990s. Subprime borrowing refers to lending to consumers with lower credit scores or limited credit histories, who are considered higher risk and typically charged higher interest rates to offset the increased likelihood of default. PrimaLend, which serves the "buy-here-pay-here" auto financing market — where dealers sell and directly finance vehicles for customers with poor or limited credit — filed for bankruptcy protection last month. Tricolor, which sold cars and provided auto loans mostly to low-income Hispanic communities in the Southwestern United States, also filed for bankruptcy in September. A further deterioration in credit quality could weigh on lenders, especially at a time when investors are highly sensitive to signs of stress in loan portfolios . High borrowing costs, rising living expenses and shrinking savings are squeezing household budgets, leaving subprime borrowers increasingly vulnerable. Rising subprime auto delinquencies are emerging as a clear sign of mounting stress in the credit market , as many lower-income Americans struggle to keep up with payments. Subprime auto loan delinquencies, where borrowers have gone at least 60 days without making a payment, rose to 6.65% in October, up from 6.50% in September and 6.23% a year earlier, according to Fitch Ratings data. For prime borrowers, those with stronger credit histories, the rate held steady at 0.37%, unchanged from both the previous month and a year ago, indicating they remain largely shielded from the financial strain affecting lower-income consumers.