A home-shopping channel supported by Seven West Media has gone into administration just two years after launch, leaving staff without pay and millions of dollars owed to its creditors.
Documents filed to the Australian Securities and Investment Commission show the Seven is owed almost $1 million from The Australian Shopping Network, while its parent company, South Korea-based Hyundai Home Shopping Network, is owed $12 million. The channel went into administration on August 6.
The Australian Shopping Network, which operates as Openshop, officially launched on August 1, 2019. It was established by Hyundai Home Shopping Network – a pioneer of live commerce in South Korea which wanted to explore Australia’s market potential. The channel offered viewers free express delivery on beauty, jewellery, fashion, technology, home and health products.
Sales segments from Openshop were streamed on 7Plus and on the Seven Network in major capital cities. If a person liked what they saw on television, it could be purchased through Openshop’s website or a direct sales number on the television screen.
It was promoted on the NSW government website and was expected to create 130 jobs. An article from The Korea Herald in 2019 said Hyundai Home Shopping had invested $45 million in the local venture. The Australian Shopping Network’s managing director Jason Kim said at the time it would make an impact in a “very competitive market”.
“We are so excited to be launching,” he said. “It’s an advanced, digital-ready economy, that is showing huge growth in online shopping.”
Home-shopping became popular in the 1980s in the US, before it expanded into other markets. Australia’s biggest player is TVSN, which has been running for more than 20 years.