HSN Execs to Be Out Once QVC Acquisition Closes
The top three executives at HSN Inc. will step down after the retailer is acquired by Liberty Interactive Group, the parent company of HSN rival QVC. Bill Brand, Rod Little and Judy Schmeling, who served as co-CEOs at HSN for the past several months, won’t be staying on after the $2.1 billion stock deal closes, according to Mike George, president and CEO of QVC Inc. The deal is expected to close by the end of the year, creating a new QVC Group that will generate $14 billion in annual revenue and serve 23 million customers worldwide. In a press release, George outlined a new organizational structure and senior executive team that's predominantly made up of staff already at QVC, with a couple of exceptions. Claire Spofford and Karen Etzkorn are the only current HSN employees who were identified as part of the new executive team.
Total Retail's Take: Acquisitions and layoffs frequently go hand-in-hand, and the merger between the two leading home shopping networks is no exception. It was probably to be expected that there would be some turnover at the top when the acquisition was finalized, and this announcement from QVC is ending any suspense. QVC is hopeful that the acquisition of its rival HSN will help reverse declining sales and profits, bolstering its e-commerce business as it looks to better compete against Amazon.com.
