According to The-Sun.com, ShopHQ, associated with iMediaBrands, has filed for bankruptcy after bosses blamed declining cable subscribers.
A Closer Look
Founded in the 1990s, iMedia Brands owned the shopping channel ShopHQ, which has a reach of 90 million people. A bankruptcy motion was filed in June 2023 just prior to the channel's purchase by IV Media.
Court papers, observed by Bloomberg, have revealed that iMedia Brands is in debt for over $370 million. The company reported a loss of over $40 million for the first nine months of 2022.
James Alt, who was the chief transformation at the company, said a Chapter 11 bankruptcy filing was critical to ShopHQ's future. Bankruptcy papers were filed despite iMedia's increase in revenue during the Covid-19 pandemic.
Alt said the firm has benefitted from U.S. consumers using home shopping channels like ShopHQ.
As with other companies around the country, including various financial institutions in general, clothing retailers, and restaurants, the economic challenges facing ShopHQ represent the increasing financial strain on the business world.