In the wake of the cord-cutting era, the ones that are severely impacted are the home shopping television networks. One such American-based shopping channel that offers televised home shopping is Shop HQ. Now, this has surely made you wonder: Is Shop HQ going out of business 2023?
Shop HQ is an American cable, satellite, and broadcast home shopping television network. It is a multi-channel video retailer that is owned by Media Brands Inc.
However, there’s more to the picture of Shop HQ than just being another home shopping network facing a financial crisis.
In this guide, we’ll discuss who owns Shop HQ, why the company is struggling, its top competitors, and whether it is true that Shop HQ is going out of business 2023.
Who Owns Shop HQ?
The parent company of Shop HQ is iMedia Brands Inc. It was earlier known as ShopNBC, ValueVision, Evine, and Evine Live.
The channel was launched on March 12, 1991, and was known as ValueVision until 2019. Besides Shop HQ, iMedia Brands Inc. also operated ShopHQ Health and Bulldog Shopping Network.
While ShopHQ Health works on providing health and wellness products to its customers, the Bulldog Shopping Network offers products for men.
Recently, the company have been facing some financial issues and as a result, IV Media owns Shop HQ.
Is Shop HQ Going Out Of Business 2023?
iMedia Brands Inc., the owner of Shop HQ, has indeed lived through some technology changes, but the latest challenges faced by the company have driven it to bankruptcy.
The company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court in the District Of Delaware. In the declaration, the company said it had seen revenue drops as the shoppers limited their spending capacity.
The parent company also said they have been actively engaging with potential buyers for their operations.
As a result, the dinky TV station group, RNN National Media Group, entered into an assets and equity purchase agreement with Shop HQ.
However, this deal was called off, and another buyer stepped in the frame.
IV Media, which is owned by billionaire Manoj Bhargava, purchased Shop HQ for $55 million. This was one of the several media acquisitions made by his company.
Bhargava said that he saw iMedia as an investment opportunity after knowing about its bankruptcy a month ago.
IV Media, which is a subsidiary of Innovation Ventures, LLC, is a producer and distributor of 5-hour Energy shots. It acquired all the assets of iMedia Brands Inc, including J.W Hulme and Christopher and Banks business.
So, overall, Shop HQ is not going of business as it has been acquired by IV Media and will be operated and managed by the company.
Who Left Shop HQ?
When the world was struggling with the impact of COVID-19, Shop HQ was no exception. Shop HQ has been struggling since 2020. It took a huge toll on the company’s financial stability, leading it to lay off 150 staff members and also lease some of its properties.
This downfall also resulted in their top hosts leaving the company. Here are some top hosts of Shop HQ that left the company:
1. Natasha Chugtai
In October 2022, the picture of Natasha Chugtai was removed from the Meet the Host section of the website. This disappearance surprised the customers and left a void in their hearts.
However, this disappearance was not for long as she returned to back to Shop HQ.
2. Melissa Miner
Another notable departure that caught the customers by surprise was Melissa Miner. She left the company to pursue other opportunities. However, the specific reason for her departure was not publicly disclosed, but her contributions as a Host will always be remembered.
Moreover, Melissa’s decision to venture into new opportunities shows the dynamic nature of the hosting industry.
3. Nikki Stanzione
Nikki Stanzione is another popular face of Shop HQ. Like Melissa, Nikki Stanzione bid farewell to Shop HQ to start her own business.
However, you might hear different reasons surrounding her departure.
4. Heather Hall
After dedicating 14 years of her career to Shop HQ, Heather Hill bid farewell to the company. She also posted a Facebook post stating the reason for her departure, which was to spend more time with her children and grandchildren.
Isomers is a skincare line whose future with Shop HQ remains very uncertain. According to its customers, they have noticed a peculiar marketing strategy of the brand: It removes its older products in order to launch its latest products.
This tactic creates a sense of urgency among its customers, tempting them to buy the product at higher prices.
What Are The Reasons To Financial Troubles Of Shop HQ?
Tough economic conditions and downsizing were not the only reasons for the downfall of Shop HQ. Some other factors also contributed to the demise:
1. The Loss Of Major Hosts
There’s no doubt that the hosts of Shop HQ play a vital role in attracting potential customers. They captivate the viewers and build a connection with them.
However, with the departure of some popular hosts, that connection gets rippled, and as a result, the viewers spend less on buying Shop HQ products.
2. Competition From Online Retailers
Another reason customers bid farewell to the once-popular shopping channel is the competition.
In recent years, the online shopping market has become unimaginably crowded. Customers now have many available options at their fingertips. This intensified competition contributed in the decreased sales of Shop HQ, ultimately leading it to bankruptcy.
3. Lack Of Innovation
In the crowded online retail industry, differentiating your brand from the rest has become more than important. However, Shop HQ has completely failed in this context.
It failed to introduce new and captivating products to entice the customers to stay, ultimately leading to its downfall.
4. Poor Customer Service
Numerous customers have complained about their negative experiences from delayed delivery to receiving the wrong products.
The customers also reported long wait times on the phones and sluggish responses to emails and messages.
As we all know, in the era where prompt customer service is expected, Shop HQ has fallen short, making its customers move for its competitors.
Who Are The Top Competitors Of Shop HQ?
Shop HQ is a digital retailer that provides food, health, fitness, watches, fashion, electronics, jewelry and other products. It also has several competitors, which are listed below:
- The Clear Cut
- Joma Shop
- Awe Inspired
- BrandsMart USA
There’s no doubt that the pandemic positively impacted Shop HQ. According to the Chief Transformation Officer, James Alt, after consecutive years of declining revenue, the company benefited from a growth in revenue due to the pandemic.
However, over the past two years, consumer behavior has altered so much due to inflation that it limited their spending capacity.
This led to an operational loss of $41.4 million for the first nine months of 2022, adding to the company’s ongoing struggles.
We hope this article has answered all your questions about “Is Shop HQ Going Out Of Business 2023?”
Is Shop HQ out of business?
Shop HQ recently filed for Chapter 11 Bankruptcy, indicating that it has been through some tough times. Later, the company was acquired by IV Media. However, the plans of IV Media for Shop IQ are unclear.
Did Micheal Valitutti leave Shop HQ?
Yes, Micheal Valitutti left Shop HQ at some point but has returned since. He felt that HSN didn’t give him sufficient opportunity to sell his jewelry.
Where is the headquarters of Shop HQ?
The company was founded on March 12, 1991. Both Shop HQ and its parent company, iMedia Brands Inc., have their headquarters in Eden Prairie, Minnesota.