ABS-CBN Also Shutting Down Its Home Shopping Affiliate
The fate of beleaguered broadcast network ABS-CBN still hangs in the balance, with the renewal of its congressional franchise set to be decided upon at the House of Representatives this week. But as if it didn’t already have a lot on its plate, the company announced it is shutting down one of its affiliates.
The O Shopping Channel will stop operations towards the end of the year, ABS-CBN said in a filing with the Philippine Stock Exchange dated Tuesday, July 7. The channel, which is operated by ACJ O Shopping Corporation, is a joint venture between ABS-CBN and CJ ENM Company Limited.
“The past two years have been challenging for the company as it experienced financial losses,” the statement read. “The COVID-19 outbreak has and will continue to take a toll on the business this year. ABS-CBN’s partner, CJ ENM, has also decided to move its business out of Southeast Asia completely.”
The closure means the company will let go of its employees starting August 7, 2020, but will continue to serve its customers “as best as it can despite the reduction in manpower in the next few months.”
The statement also said the company will make further announcements regarding the selling of its goods on-air and online.
ABS-CBN, the country’s leading broadcast network, is currently in the midst of a contentious process of renewing its congressional franchise. The National Telecommunications Commission (NTC) ordered it to shut down operations in early May for lack of a franchise. In late June, the NTC also issued a cease-and-desist order against its subsidiary Sky Cable Corp. ordering it to stop its direct broadcast satellite service.