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Esteemed Contributor
Posts: 7,092
Registered: ‎03-05-2011

I think They are in Trouble

[ Edited ]

QVC sold its QVC Studio Park facility, which includes its global headquarters and studios in Pennsylvania, to a Chicago-based company called Oak Tree for $443 million. The transaction also include QVC warehouses in South Carolina, Virginia and Tennessee.

That doesn’t mean that QVC is moving out. The deal was a so-called sale-leaseback. That means a company sells a building but then agrees to lease it back from the new owner. A number of retailers, including Bed Bath & Beyond and Lane Bryant, have done similar deals.

What’s the point?

Well, it allows the retailers to raise cash. What’s the tradeoff? Now those companies will have to pay rent to the entity they sold their buildings to.

For public companies, and QVC is part of one, this is a way to improve their financials for shareholders during tough financial times.

 

This was copied from Linda Moss Home shopping Blog.  There is more to this article but I suggest you go there to read it.   

Honored Contributor
Posts: 41,612
Registered: ‎03-09-2010

Re: I think They are in Trouble


@BalletBabe wrote:

QVC sold its QVC Studio Park facility, which includes its global headquarters and studios in Pennsylvania, to a Chicago-based company called Oak Tree for $443 million. The transaction also include QVC warehouses in South Carolina, Virginia and Tennessee.

That doesn’t mean that QVC is moving out. The deal was a so-called sale-leaseback. That means a company sells a building but then agrees to lease it back from the new owner. A number of retailers, including Bed Bath & Beyond and Lane Bryant, have done similar deals.

What’s the point?

Well, it allows the retailers to raise cash. What’s the tradeoff? Now those companies will have to pay rent to the entity they sold their buildings to.

For public companies, and QVC is part of one, this is a way to improve their financials for shareholders during tough financial times.


 

 

 they receive cash money and dont have to worry about the upkeep of the grounds or the buildings or the taxes in the long run. many companies are doing this. just read about lane bryant selling their corporate campus for 42 million a few days ago. they are also leasing back the property. seagate tech in silicone valley is selling its campus and will be leasing back the property.

 

these days it is becoming quite popular.

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"The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing." - Albert Einstein
Honored Contributor
Posts: 9,855
Registered: ‎02-07-2011

Re: I think They are in Trouble

Both BB&B and Lane Bryant are in financial trouble.  I see this as a desperate measure to raise needed cash.

 

Super Contributor
Posts: 339
Registered: ‎03-26-2010

Re: I think They are in Trouble

Love watching but must admit high prices are just too high for me on most items.  Especially since so many retaiilers offer better prices and free shipping all the time.  QVC will need a rebranding IMO.  Not the quality value and convenience "game in town" anymore.  #Inflation #Recession 

Honored Contributor
Posts: 71,065
Registered: ‎03-10-2010

Re: I think They are in Trouble

@BalletBabe    Or this move may get them out of trouble.  Time will tell.

New Mexico☀️Land Of Enchantment
Respected Contributor
Posts: 3,808
Registered: ‎01-02-2015

Re: I think They are in Trouble

Was watching the Logo show at 5 .. I just can't spend 67.00 plus shipping

for one top ...

 

I used to .. before fixed income set in ....

Trusted Contributor
Posts: 1,535
Registered: ‎06-27-2010

Re: I think They are in Trouble

Whether or not QVC is in "trouble" isn't ascertained by this deal.  There are many large corporations doing the same thing, especially as the need for office space is lower due to work from home options.   There are also tax advantages, not to mention an influx of cash to fund projects. 

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Contributor
Posts: 33
Registered: ‎11-04-2011

Re: I think They are in Trouble

[ Edited ]

This is spot-on correct. We're doing this with some of our property for these exact reasons but with two 5-year lease back options to renew. It does not indicate a company is in trouble, but rather one that is forward thinking and trying to maximize how their dollars are being spent.

Esteemed Contributor
Posts: 7,092
Registered: ‎03-05-2011

Re: I think They are in Trouble


@mike995134 wrote:

This is spot-on correct. We're doing this with some of our property for these exact reasons but with two 5-year lease back options to renew. It does not indicate a company is in trouble, but rather one that is forward thinking and trying to maximize how their dollars are being spent.


@soozer @Kachina624 @Big Joanie @Tori3569 @mike995134    My thing is this:  I feel they are in trouble for many reasons.  Some things we post here all the time.  Like certain Hosts that are out of hand. 

 

Prices that are so high, Free shipping to NEW Customers only, Stale Merchandise. The TSV shown almost the whole day, and worst of all major shipping problems.  I don't see any of this changing.  I hope I am wrong but I have seen these problems going on for several years.  Long before Covid.  They have a lot of stuff on sale.  I never saw so much on sale.  I guess time will tell but they need to change what they are showing.  Look at all the stuff they have added to watch.  How many of you are watching any of it?? 

 

Then top all that off with the screen is freezing a lot now.  The internet is poor.  Look at what happened with David's Calendars?  I don't feel good about it.  

Honored Contributor
Posts: 13,905
Registered: ‎11-24-2013

Re: I think They are in Trouble

And we're off! Again.