QVC Veteran Michael O’Connor Heads Back To JTV

Stylist and jewelry designer Michael O’Connor, who used to be the Affinity Diamond guy on QVC, will be returning to JTV.

O’Connor did a stint at JTV after he left QVC, and then he moved on.

But he just posted on Facebook that he is returning to JTV starting July 13 with a show called “Michael O’Connor Style” that will air live every Thursday at 6:30 Eastern. The show will be available on JTV Extra! on the network’s website, as well as on O’Connor’s Facebook page.

“I hope you will join me very week for specially curated selections of beautiful jewelry, styling tipsand trend talk!” he said.

We always enjoyed him, and will check out his show.

The Scoop On ShopHQ’s Bankruptcy Filing And Future, Including Possible Sale

We’re perusing the ShopHQ-iMedia Brands bankruptcy filings now.

If you want to take a look yourself, here is the link: https://cases.stretto.com/iMediaBrands.

We just started, so here is how far we’ve gotten.

ShopHQ has between 1,000 and 5,000 creditors, according to a court filing. The company said it has $272.6 million in assets and debts of $373.7 million. And we thought our credit card debt was worrisome!

The company’s biggest equity holders are Cede & Co., which is based in Jersey City, New Jersey, and owns 84.75%, and Invicta of Hollywood, Florida, which owns 6.98%.

The list of the top 50 unsecured creditors — i.e. folks who aren’t likely to get paid — include a number of cable companies as well as ShopHQ vendors. The roster includes: McKenzie-Childs, $3.5 million; Sterling Apparel, $3.3 million; Isomers, $1.6 million; and Fabulous Furs, $982,000.

Jewelry vendor Michael Valitutti, who pulled his merchandise off the network after apparently not getting paid, is not on that particular list.

And here is what the home shopping networks’ chief transformation officer, James Alt, had to say in an affidavit.

“Prior to the commencement of these chapter 11 cases, the debtors faced substantial macro challenges due to a confluence of factors driven primarily by post-pandemic changes in the spending behavior of consumers, inflationary pressures on goods and labor, high content distribution costs, and continued erosion in household subscribers in the U.S. cable and television market,” Alt said.

“This combination of factors, together with reduced availability under the debtors’ prepetition asset-based lending facility beginning in December 2022, have caused the debtors to face substantial business challenges described more fully below,” he said.

He goes on the describe the moves that ShopHQ made to shore up the company, to no avail. It defaulted on its loans. But Alt said ShopHQ is in talks with a potential buyer.

“The debtors, with the assistance of Lincoln, their investment banker, have neen actively seeking to develop strategic alternatives, including by soliciting bids for some or all of the debtors’ assets,” Alt said.

“The debtors are in fact actively engaged with a potential acquirer for their operations as a going concern. With the assistance of their advisers, the debtors are actively working to finalize that proposed transaction in the very near term. However, the debtors ultimately determined that commencing these chapter 11 cases would be a prudent step to facilitate these efforts by, among other things, allowing the debtors to obtain the ‘breathing spell’ as they work to finalize a value-maximizing transaction for their stakeholders.”

Alt also offered this description of ShopHQ’s woes. And it’s not a pretty picture.

He said that ShopHQ tried “to reach consumers within the growing “baby boomer” demographic in the hopes of driving their various e-commerce, digital, and brick and mortar retail revenue streams.”

In fiscal 2021, “after consecutive years of declining revenue, the company benefited from a growth in revenue as a result of the COVID-19 pandemic, which led to an increase in home shopping activity,” according to Alt.

“Over the past two years, however, the debtors believe that inflationary pressures have altered consumer behaviors and reduced discretionary at home spending,” he said.

“Reduced revenues resulted in significant financial losses in the debtors’ entertainment business segment, which typically accounts for the company’s largest revenue stream. The company suffered an operating loss of $41.4 million for the entertainment segment for the nine months ending Sept. 30, 2022, compared to an $11.6 million operating loss during the same time period in the debtors have continued to experience significant sales declines into 2023 on a year-over-year basis which have reduced receipts and, by extension, operating cash flow.”

Alt added, “As the debtors’ operating position has deteriorated, the debtors have received several notices of default in connection with key vendor agreements and leases, and several related litigation proceedings have been commenced against the debtors.”

Mmmmmmmmmmmmmmm, wonder who this potential buyer is.

Struggling ShopHQ Files For Chapter 11 Bankruptcy Protection

Guess we shouldn’t be surprised, but here we are: ShopHQ’s parent company has filed for Chapter 11 bankruptcy protection.

Here is the link to the actual filing and its documents, https://cases.stretto.com/iMediaBrands, but here is what CEO Tim Peterman said in a regulatory filing:

https://www.imediabrands.com/investors/sec-filings/all-sec-filings##document-2814-0001104659-23-076399-1

On June 28, 2023 (the “Petition Date”), the Company and its U.S. subsidiaries filed a voluntary petition (Case No. 23-10852) (the “Chapter 11 Cases”) for relief under Chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).

The Company continues to operate its business as a “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. The Company has sought approval of a variety of “first day” motions containing customary relief intended to enable the Company to continue ordinary course operations during the Chapter 11 Cases.

The Company cannot give any assurance that holders of the Company’s common stock will receive any payment or other distribution on account of those shares following the Chapter 11 Cases.

Additional information on the Chapter 11 Cases (including copies of all documents filed in the Chapter 11 Cases) can be found at: https://cases.stretto.com/iMediaBrands

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

Existing Credit Agreement Events of Default

The filing of the Chapter 11 Cases constitutes an event of default, and resulted in an immediate acceleration of the obligations arising therefrom, under the Loan and Security Agreement, dated as of July 30, 2021 by and among the Company, as the lead borrower, certain of its subsidiaries party thereto as borrowers, Siena Lending Group LLC and the other financial institutions party thereto from time to time as lenders, Siena Lending Group LLC, as agent, and certain additional subsidiaries of the Company, as guarantors thereunder (as amended, the “Existing Credit Agreement”). As of the Petition Date, the Company had an aggregate of approximately $19.4 million in outstanding principal and accrued interest under the Existing Credit Agreement.

Scott Grimes Is Exiting Jai Jewelry On QVC

We were sad to learn that Scott Grimes, who has been creative director of the Jai Jewelry line on QVC for 10 years, is leaving.

Grimes posted the news of Facebook. Jai will remain on the home shopping channel, but Grimes won’t.

Grimes, who just turned 50 and is a John Hardy jewelry veteran, said he had enjoyed his time with Jai but it was time to try something new.

“When I take a moment and think about it, we really have had the most incredible adventures exploring together,” he said on Facebook. “We have traveled through Africa, India, Thailand, Alaska, Japan, and Italy. Each destination unlocked a part of me that allowed me to become a better person, designer, and storyteller.”

Grimes continued, “Yet the biggest adventure that we have shared together is our adventure of life. You all have been with me for the most important stories of my life: the birth of my daughter Olive and son Christian and the passing of my Mom and Dad. Over the years we have shared tears of joy and heartache, and along the way you have opened your heart to me and shared so much and that has meant the world to me.”

We enjoyed Grimes, his personality, presentations and little sterling works of art. We have a number of Jai pieces in our collection, which sit alongside our John Hardy jewelry.

Grimes was always warm and sharing about his life, and often would become teary when he talked about his mom. She must have been quite a woman.

“I’m excited to see what Shani Louis and the JAI Team do next, as I will be following along to see and hear about the next great JAI adventure,” Grimes said. “I’m sure it will be wonderful.”

We had seen Louis on recent Jai shows on QVC, and was wondering what was up. Now we know.

All the best Scott. You will be missed.