‘Once it’s gone, it’s gone’: Home shopping network TVSN prepares to shut down

Specialist home shopping broadcast network TVSN has informed customers of a shutdown sale beginning Tuesday after its parent company failed to find a buyer, but suppliers say they have been kept in the dark about the closure.

TVSN, which has been operating for more than three decades and advertises hundreds of fashion, homewares and accessories through Seven Network’s channels, as well as its own livestream, urged customers to stock up on Christmas gifts as the business prepares to wind up operations.

TVSN has been broadcasting since 1995 and was first owned by Channel 10. It has been traded multiple times since and is now owned by Direct Group. iStock“Direct Group, the owner of TVSN, has spent recent months seeking new investment or a buyer for the business. Unfortunately, it has not been possible to secure a transaction that would allow TVSN to continue in its current form,” an email sent to customers on Sunday and Monday, seen by this masthead, said.

“Absent finding such a buyer, the board expects to close TVSN.”

A closing-down sale will begin on Tuesday to liquidate stock, but the sale will end if a buyer is found, the email continued. Customers were urged to use their gift cards, vouchers or store credit.

“We recommend shopping early as quantities are limited and there will be no restocks. Once it’s gone, it’s gone.”

Two suppliers, who spoke to this masthead, said they were not directly informed of the closure and are owed thousands of dollars by the shopping network that they fear they will never get back.

Alison Lennard, the owner of women’s fashion label Philosophy Australia, said TVSN was her biggest wholesale client and owed tens of thousands in unpaid invoices.

“This is a significant loss. I’m already feeling very volatile for my business plan going forward,” Lennard said. “I have no idea whether there is any possibility of recovering that money, or even whether I’ll be able to access the stock of mine that they are currently holding.”

Over the past few months, TVSN has become slower at paying outstanding invoices. Despite that, it had attempted to place a fresh order just last week, she said.

“I don’t think I’ll end up getting anything out of them. Apparently, the creditors’ list is going to be substantial,” she said. “To be honest, I feel sick. It’s the worst news I could have received.”

TVSN, which has been airing since 1995, is owned by direct-to-consumer retailer Direct Group, which targets customers over 45 years old and also publishes Reader’s Digest Australia. The two companies, as well as Direct Group chairman and TVSN director Bernie Brookes – a former chief executive of Myer – were contacted for comment.

The shopping channel advertises more than 6000 products, with presenters showcasing particular products for an hour through unscripted demonstrations live every day from 8:30am to 9:30pm AEST. L’Occitane, Dyson, VS Sassoon, Tefal, and Delonghi are among some of its big-brand suppliers.

TVSN has changed hands multiple times over the decades. Initially owned by Channel 10, it was acquired by Hong Kong-based investors in 1996 before listing on the Australian stock exchange three years later.

In 2004, it was acquired by Direct Group, which received a $40 million cash injection by private equity group CPE Capital. The firm has been contacted for comment.

Hair products and cosmetics brand Silk Oil of Morocco has encouraged customers to shop directly with them instead of TVSN, where founder and director Shirley Piscina launched her brand 17 years ago.

“For me, there’s been many tears this week, there’s been shock, and there’s also been anger. Anger at the mess they’ve left us in, and the communication – there’s been no communication,” Piscina told followers in an Instagram video, in which she grew visibly emotional.

“It’s now time to support the suppliers directly. WE HAVE NOT BEEN PAID,” Piscina said in a separate post.

Another TVSN supplier of women’s clothing said the company was leaving many suppliers in debts of at least $3000, and that they could lose their homes.

“TVSN is going into a closing down sale selling my stock which they haven’t paid for – and they haven’t even got the decency to notify any suppliers at all. That’s just disgusting, as far as I’m concerned,” they said.

“[It’s] more about small Australian companies again being screwed over by the big boys.”

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