The joint venture of ABS-CBN Corp. and South Korean entertainment and retail company CJ ENM will stop operations by end of the year due to financial losses.
The Lopez-led company said ACJ O Shopping Corp. will cease operations after seven years offering TV shopping via the O Shopping Channel.
“The past two years have been challenging for the company as it experienced financial losses,” ABS-CBN said.
“The COVID-19 outbreak has and will continue to take a toll on the business this year. ABS-CBN’s partner, CJ ENM, has also decided to move its business out of Southeast Asia completely,” it added.
Given this, ACJ O has made the difficult decision to let go of its employees starting August 7, 2020.
“The company is thankful for their valuable contributions through the years and ensures that they will receive separation packages as the law requires,” ABS-CBN said.
As it winds down its operations, the company will make further announcements regarding the selling of its goods on-air and online.
“ACJ will continue to serve its customers as best it can despite the reduction in manpower in the next few months,” ABS-CBN said.
The government earlier shut down the operations of ABS-CBN Channel 2, TV Plus and SkyCable Direct due to expired Congressional franchise.