Tauranga fashion company Blackstone Clothing dodges $40,000 bullet as shopping network TVSN shutters

As businesses count the cost of the impending closure of TV shopping network TVSN, one Kiwi fashion brand says it dodged a $40,000 bullet after pulling an order just a week ago. 

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

The news has left business owners here and across the ditch fearing for unpaid invoices, including Kiwi shoe company Minx Footwear, which it says is owed a six-figure sum. 

But owner of Tauranga-based Blackstone Clothing, Rebecca Wasley, told the Herald they got “lucky” after their agent in Australia told them to hold off going through with a order from TVSN. 

“We were really excited about the opportunity because we have been trying to break into the Australian market for a few years,” Wasley said. 

She said their agent, who deals quite heavily with TVSN, sounded a warning a week before TVSN emailed suppliers informing them of a closing-down sale. 

“We did considerable work on getting pricing that [TVSN] were happy with, going through all the terms, organising a presenter to go over there in March and it was a considerable order. 

“We held our orders for a couple of weeks with our production just to give [TVSN] a chance to get everything through. 

“We were quite lucky that our agent came to us about a week later and said hold off on that order; things are looking a little bit rocky, so we didn’t place it.” 

Wasley said the order was for around $40,000. 

“Luckily all of our manufacturers hadn’t started producing yet, otherwise we would have been facing excess stock which we don’t like to hold.” 

‘Heartbreaking’ 

Minx owner Cushla Reed was in Sydney two weeks ago watching customers snap up her designs live on air and says she is still owed a six-figure sum. 

The news came as a “real shock”, she said. 

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

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

In an email to suppliers, TVSN owner 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.”