'Heartbreaking': Kiwi company fears six-figure shopping network payment won't come

A Kiwi footwear company says it is owed hundreds of thousands of dollars and fears it could be left out of pocket as a major TV shopping network holds a closing-down sale. 

The Television Shopping Network (TVSN), which has broadcast in Australia and New Zealand for three decades, announced this week it was holding a closing-down sale after failing so far to secure a buyer or investor. 

Cushla Reed, owner of Minx, told the Herald the news came as a “real shock”. 

Two weeks ago Reed was in Sydney watching customers snap up her designs live on air. 

“Now realising that there’s a potential I may never get paid for it is absolutely heartbreaking,” she said. 

“It’s a significant amount for an independent business. We’re seeking some really strong clarity around how that’s to be resolved.” 

Reed said stock sold during her most recent appearances was supplied on standard trade terms and Minx was still awaiting a six-figure payment. 

She said TVSN had even confirmed an order for next winter. 

“All the indications were that they were on the up and up and doing well.” 

But on Tuesday, Reed received an email from TVSN owner Direct Group explaining the decision to hold the sale, but providing no information about the payment Minx says remains outstanding. 

Direct Group said it was commencing a closing down sale because of “difficult trading conditions” and “limited access” to required funding. 

“Unfortunately, we have not yet secured a transaction that would allow the business to continue in its current form, which has led us to hold a Closing Down Sale,” it read. 

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

“If a buyer or investor is successfully secured, the Closing Down Sale will cease. We remain hopeful we can achieve an outcome that preserves the business, our people and, importantly, our long-standing relationships with our suppliers.” 

The Herald has contacted Direct Group for comment. 

Minx had received an order from TVSN for next winter before the shopping network announced its closing down sale. 

Reed said she had supplied TVSN for two seasons. 

“It is a challenge. We would rather have that for our cashflow and funding next season’s collections but next week we’ve got more product coming in, we’ve got orders on the books and production on the go. 

“We will continue.” 

The Sydney Morning Herald reported another supplier, women’s fashion label Philosophy Australia, was owed tens of thousands in unpaid invoices. 

Owner Alison Lennard told the Sydney Morning Herald that TVSN had become slower at paying outstanding invoices over the past few months. 

Reed said her concern extended to the TVSN staff, presenters and production teams who helped introduce Minx to viewers across Australia and New Zealand. 

“I feel terribly sad for the people who have worked tirelessly to make TVSN what it is. They created a special way for customers to discover products, hear directly from designers and feel part of a community,” she said. 

“We still hope the right investor or buyer will come forward and preserve the business and its people. 

“Alongside that hope, suppliers need answers. Behind every outstanding invoice is another business, another team and years of work.”