Q Talk

[They CallMe MRWILKES]

What a week at Studio  Park!

Go to the conference room to cast your vote for SAG/AFTRA and pickup your retention (or severance) check on the way out!

[AZfem]

Remember how posters were letting us know how much QVC stock was tanking over the years?  It went down to a penny stock & was worth cents at the end. 

If someone hung on to a tanking stock like that, that's on them. 

Retail is a terrible investment - malls are closing, stores are closing & declaring bankruptcy. The whole retail landscape is drastically changing every day. 

[Estellee]

I thought things were starting to look up but there are so many twists and turns to this situation. I'm still keeping a good thought for QVC.

[geezerette]

One of the reasons people buy preferred stock is because in the event of bankruptcy the common stock is wiped out but usually/often the preferred retains at least some of its value.  They are in line for payment after the creditors, I believe.  Common stock is at the bottom and 99 times out of 100 their stock becomes worthless when bankruptcy is officially declared.  

I agree with the theory that the preferreds don't have anything to lose either way, other than attorney and court costs.  And they must feel they have a good case.

[Mz iMac]

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@They CallMe MRWILKES wrote:

Summary as of today:

Most interesting, to me, is the disclosure of an employee incentive and retention program, intended to keep key employees who might otherwise leave due to the filing.  Thus far, this program has cost $70 million!  Retention bonuses really aren't that unusual,  but that's a lot.  Seems like a large number of employees may have jumped ship.

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@They CallMe MRWILKES  In my mind "key" employees would be........

janitors - Who is going to clean the bathrooms?

Housekeeping staff - Who is going to clean after the employees & vendors who need to stay over for one reason or another?

Control room/booth employees - Who will take over the DJ job for Gary & Jayne? 

Camera employees - Need these folks to stay "on air."

Producers - Who will remind David every 2 seconds to name all the colors?

Food prep, stage & wardrobe stylists/decorators, etc.

Last but not least........

IT Department!

[elated]

I knew the preferred stockholders were not going to give up. Apparently, that is a big loss to take and no one is going to do that. I read that there was another situation the preferred stockholders were arguing against. There is more to this appeal than has been stated. It's very complicated.

Whether QVC can manage this storm or not, time will tell..It is sad that everyone will suffer if this is not settled.

[cindyNC]

I don't shop at QVC but would really miss this forum. 

[SEGardener]

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@They CallMe MRWILKES wrote:

Summary as of today:

While the Bankruptcy Court has approved QVC's plan, the Preferred Shareholders immediately appealed to a US District Court.  In addition,  they filed a motion with the Bankruptcy Court to stop the confirmation until the appeal is heard.

Of course, yesterday QVC filed a motion opposing the Preferreds' action.

QVC was quite frank in stating that it can not survive in any form if confirmation is stayed while waiting for an Appeals Court decision,  noting that it could take a year or more.

QVC cited the ongoing costs of the Chapter 11 such as attorneys and financial advisors. 

As others have noted here, vendors are reluctant to deliver product unless paid in cash or delivery is secured by a letter of credit.  This situation will get worse if confirmation is delayed any longer.

Most interesting, to me, is the disclosure of an employee incentive and retention program, intended to keep key employees who might otherwise leave due to the filing.  Thus far, this program has cost $70 million!  Retention bonuses really aren't that unusual,  but that's a lot.  Seems like a large number of employees may have jumped ship.

QVC has requested that if the Court stays the confirmation,  the Preferred Shareholders be required to post a bond of $900 million+ to cover Debtors various costs.

Nothing is smooth or easy.  It surely doesn't look good for the viability of this business if not resolved quickly.

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Sometimes retention programs are not immediate cash bonus/payout but monthly salaries, paid each month with a term lasting 1 year.  The retention may have been an increased salary and possibly a week or two addl personal time.

[stevieb]

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@elated wrote:

I knew the preferred stockholders were not going to give up. Apparently, that is a big loss to take and no one is going to do that. I read that there was another situation the preferred stockholders were arguing against. There is more to this appeal than has been stated. It's very complicated.

Whether QVC can manage this storm or not, time will tell..It is sad that everyone will suffer if this is not settled.

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Huge loss to the tune of 1.4 billion in preferred stock just wiped clean. I'd seek a stay too were I on the receiving end of this debacle. The terms agreed to by the judge seems very generous to me. 

[stevieb]

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@Mz iMac wrote:

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@They CallMe MRWILKES wrote:

Summary as of today:

Most interesting, to me, is the disclosure of an employee incentive and retention program, intended to keep key employees who might otherwise leave due to the filing.  Thus far, this program has cost $70 million!  Retention bonuses really aren't that unusual,  but that's a lot.  Seems like a large number of employees may have jumped ship.

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@They CallMe MRWILKES  In my mind "key" employees would be........

janitors - Who is going to clean the bathrooms?

Housekeeping staff - Who is going to clean after the employees & vendors who need to stay over for one reason or another?

Control room/booth employees - Who will take over the DJ job for Gary & Jayne? 

Camera employees - Need these folks to stay "on air."

Producers - Who will remind David every 2 seconds to name all the colors?

Food prep, stage & wardrobe stylists/decorators, etc.

Last but not least........

IT Department!

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Definitely the janitors, who will be needed to turn out the lights...