ABS-CBN's O Shopping to stop operations

ACJ O Shopping Corp., a joint venture of ABS-CBN Corp. and CJ ENM Company Limited, will stop operations toward the end of 2020 with employees expected to be let go by August amid the backdrop of the COVID-19 pandemic.

In a regulatory filing, ABS-CBN Corp. said its partner CJ ENM has already decided to completely move its business out of Southeast Asia.

"The past two years have been challenging for the company as it experienced financial losses. The COVID-19 outbreak has and will continue to take a total on the business this year," the disclosure read.

"As a result, ACJ O has made the difficult decision to let go of its employees starting August 7, 2020," it added.

Several Philippine businesses have also been forced to stop operations due to losses brought about by the lockdowns implemented to prevent the spread of the coronavirus disease.

"The company is thankful for their (employees) valuable contributions through the years and ensures that they will receive separation packages as the law requires," the broadcaster said.

"ACJ O is grateful for the support of O Shopping's customers throughout the years," it added.

According to its website, O Shopping is the trusted service leader in Home TV Shopping from Korea, which allows viewers to purchase products through a customer hotline assisted by sales consultants for order placement and home delivery arrangements.

"As it winds down its operations, the company will make further announcements regarding the selling of its goods on-air and online," the disclosure read.

"ACJ will continue to serve its customers as best it can despite the reduction in manpower in the next few months."

On May 5, the National Telecommunications Corp. (NTC) ordered ABS-CBN Corp. to stop operating its various television and radio stations absent a congressional franchise, despite an earlier promise that it will give a provisional franchise.

ABS-CBN signed off the same evening following a broadcast of its news program TV Patrol, in compliance with the cease and desist order.

Prior to the warning, the NTC said it will heed orders of both House of Congress to grant ABS-CBN a PA to allow the company to continue operating while its franchise is being deliberated.

Last month,  the NTC ordered Sky Cable Corp., a subsidiary of ABS-CBN Corp., to stop its direct broadcast services under SkyDirect after its franchise lapsed.

Government agencies such as the Bureau of Internal Revenue (BIR) and the Securities and Exchange Commission (SEC) have maintained ABS-CBN Corp. from violations. --KBK, GMA News