‘Shame on TVSN’: Suppliers say they’re owed hundreds of thousands as network shuts down

Suppliers who have spent years selling products through TVSN say they have been left blindsided and owed thousands as the television shopping network prepares to shut down.

The Aussie home shopping network has launched a closing-down sale as its owner, Direct Group, seeks a new investor or buyer.

Brisbane business owner Shirley Piscina says the announcement has left her facing a $200,000 debt after 17 years supplying the network.

“I was up at 2.30 this morning, I haven’t stopped crying,” she told A Current Affair.

Piscina, who owns the hair and skincare brand Silk Oil of Morocco, said she was on set selling products just a week and a half ago.

She said TVSN had requested additional stock at the time, with no indication the business was preparing to close.

“Now we’re left with a debt of $200,000.”

Piscina said suppliers had been given little information about what was happening.

“It’s just horrific, the lack of communication has just been horrendous,” she said.

TVSN has been on Australian screens since 1995 and is known for its live pitches on everything from cookware and fitness equipment to beauty products and household gadgets.

Presenters were still on air on Wednesday, promoting products while making a final appeal for someone to step in and save the network.

“I believe in miracles and miracles do happen so let’s just see if somebody out there wants to continue this fabulous network,” one presenter said.

Another major supplier, So Simple Solutions, says it is owed more than $170,000.

Product manager Peter Samios has regularly appeared on TVSN, selling products such as water filters, air purifiers, and cookware.

He said warning signs began appearing earlier this year when the network asked to move onto a payment plan.

He showed A Current Affair a series of unpaid invoices ranging in value from $11,000 to $44,000.

Samios said his company’s products kept selling despite the unpaid bills.

“They’ve been on air, they’ve sold all the product to the customers, and they’ve used all that money somewhere else instead of paying their suppliers,” he said.

“It’s disgraceful.

“Shame on TVSN.”

Brand expert Dee Madigan said the closure came as traditional television shopping faced fierce competition online.

“I think the model has had its day,” she said.

Madigan said shoppers were increasingly turning to their phones instead of television, with TikTok Shop also set to enter the Australian market.

“We still love buying stuff, but it’s more the model has changed, I think. And instead of buying off a TV, we’re more likely to buy off our phone,” she said.

As TVSN continues its closing-down sale, some suppliers are launching competing deals directly through their own businesses.

Piscina said her company would match TVSN’s prices.

“Whatever they’ve put on their website, we’re going to offer the same because how dare you sell stuff that you haven’t even paid for,” she said.

Samios is doing the same.

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“We’re gonna match the price, and everyone’s going to get a gift as well,” he said.

He urged customers considering the TVSN sale to shop directly with suppliers instead.

For Piscina, the collapse has left suppliers who helped keep the network running fearing they will recover little of what they are owed.

“We’re not going to get our money back, we’re at the bottom of the pile. But we’re the ones who have been at the heart of TVSN,” she said.

Media statement from Direct Group

Direct Group, owner of TVSN and Innovations, today confirmed it has launched a Closing Down Sale across its TVSN, Innovations and In-Fashion ranges, while it continues to actively pursue a sale or recapitalisation of the business.

The Closing Down Sale follows the withdrawal of the Company’s trade credit insurance – cover that had protected suppliers against non-payment of accounts – – and the subsequent decision by some suppliers to cease stock supply.

The business has also experienced cash flow pressure since its private equity owners exited.

Due to difficult trading conditions and limited access to the funding required to support stock purchases, customer acquisition, systems and ongoing growth, if a buyer is not found, we will have no alternative but to close the business.

At this time Direct Group will not be placing new stock orders, and we will not accept deliveries of goods unless specifically agreed in advance.

The Closing Down Sale is intended to drive sales to allow us to reduce outstanding liabilities and support the business.

Approximately $30 million of stock, at retail value, is being offered for clearance.

The Closing Down Sale is a contingency measure, not a certainty. It is being run in the event that a buyer is not secured and will be scaled back or ended immediately should one be found.

Direct Group remains hopeful that a buyer will emerge, preserving the business.

Many of the brands and product ranges offered through TVSN, Innovations and In-Fashion are exclusive to these channels and are not available elsewhere in Australia.

If a buyer cannot be found and the business closes, a significant number of these products will no longer be available to Australian consumers at all.

Customers wishing to take advantage of Closing Down Pricing on these ranges are encouraged to act quickly, as stock is limited and will not be replenished.

There are extraordinary offers across the products, brands and categories.

The Closing Down Sale is available now at tvsn.com.auand innovations.com.au.

Direct Group will not provide further updates or media commentary on this matter until either a buyer is secured or a final closedown decision is made.