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Late night TV spruiking companies collapse leaving Channel Nine out of pocket

Two companies which ran late night infomercials and chat lines on Channel Nine have gone into administration and are likely to be liquidated.

Hall Chadwick was appointed as administrator of Chat TV and The Jewellery Channel just before Christmas.

Chat TV and The Jewellery Channel collapsed owing around $650,000, with Channel Nine the major creditor.

Administrator Brent Kijurina told SmartCompany there had been no proposal for deeds of company arrangement, so both companies were likely to be placed into liquidation.

"Chat TV and The Jewellery Channel paid Channel 9 to have late night TV spots where people would ring up to buy jewellery or ring 1900 numbers to speak to the 'so-called babes' that were on TV," he says.

Kijurina says his investigation into the causes of the collapses has been "severely hampered" because of a lack of records provided.

"I have been informed that simply the companies did not generate sufficient revenue to pay for their expenses, but given the lack of records received, it has been difficult for me to pinpoint the exact reasons."

A second meeting of creditors will be held on January 18 in Sydney.

SmartCompany contacted Channel Nine for comment but no reply was available prior to publication.

 

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Cara Waters

SmartCompany editor

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Cara Waters is the editor of SmartCompany. Previously, Cara was a senior reporter at the Financial Times website FT Adviser in London and she also worked for The Sunday Times in London.
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