QVC Group filed for Chapter 11 bankruptcy protection Thursday in the U.S. Bankruptcy Court for the Southern District of Texas. The prepackaged bankruptcy filing follows a restructuring support agreement with holders representing a majority of the company's outstanding funded debt. The agreement will reduce QVC's debt burden from $6.6 billion to $1.3 billion through the restructuring process.

The restructuring marks a dramatic reduction in QVC's debt load, cutting liabilities by more than 80%. The company's prepackaged bankruptcy approach suggests an orderly process with pre-negotiated terms, potentially allowing for a faster emergence from bankruptcy protection. This debt reduction could provide QVC with greater financial flexibility as it navigates the evolving retail landscape.

The bankruptcy filing comes as QVC faces challenges in the competitive home shopping and e-commerce sectors. The significant debt reduction through restructuring may help position the company for future growth, though the bankruptcy process will likely involve operational changes and potential asset sales as part of the turnaround strategy.