YesShop no more

Television shopping YesShop has folded.

Employees have been told that its owner, Yes Retail, had made the decision to stop trading. ‘‘As a result, your employment with the company is being terminated.’’

It said it did not have the funding to pay wages. It is believed the channel’s presenters had already been let go. Mike Puru, who presented on both YesShop and its rival The Shopping Channel, is believed to have finished within the last week.

The letter said the company had been in financial difficulties for some time and had been trying all avenues to deal with losses of about $20 million and an increasing number of creditors.

‘‘The directors and senior management have been trying their best to secure funding to cover the significant losses, but a potential lifeline deal has fallen through at the last minute due to events outside the control of both parties.’’

It said the company’s arrangements with Sky Television and Freeview would end this month.

YesShop has been approached for comment.

Its former operations manager, Phill Dodds, said he had resigned and was not sure who was running the business. He said he had a contract that stopped him discussing details of the operation.

YesShop was also screened on Foxtel in Australia.

It has links to the world’s largest TV and online shopping giant, the Korean Hyundai Home Shopping Network, after signing a supply agreement last year with H-Mall, part of one of the world’s largest omni-channel retailers.

Choice TV co-founder Alex Breingan said it was tough to start a new television channel.

‘‘TV channels cost an awful lot to run; you have to pay Kordia for transmission on Freeview and Satellite and it’s very expensive. Small channels pay the same as TVNZ and TV3 so is always a battle to find revenue to offset it,’’ he said. –Fairfax NZ channel