The owner of the ChoicesUK video shop chain has pulled the plug on its home shopping channel after less than a year on air.
Home Entertainment yesterday blamed a poor sales performance for the decision to close ChoicesUK TV and absorb losses that could be as high as £1.35 million.
ChoicesUK TV was launched in August on the Sky Network and initially appeared to help sales at its 225 high street stores which are suffering from piracy and falling prices.
Hosted by Paul Ross, it enabled viewers to buy DVDs, video games or gadgets around the clock as well as watch film clips and hear discussions about the latest releases.
Analysts believed its prospects were bright as comments from operators of rival home shopping channels suggested that they were in one of the more resilient corners of the retail sector.
The closure of the channel is the latest blow to Home Entertainment which warned in January that it was facing its first annual losses since 1991 in spite of a pick-up in sales over Christmas.
Action taken has included a boardroom reshuffle, with Iain Muspratt give up the dual role of chairman and chief executive to become non-executive chairman instead.
All its operations, which range from high street shops to the distribution of videos and DVDs to individual retailers, have been rebranded as ChoicesUK. In a strategic update, Home Entertainment said it was now recommending that this rebranding exercise be extended to include the company name.
It has restyled a chunk of its high street estate and extended ranges to include posters, magazines and music rather than managers having to rely on people stopping to pick up a film for the evening.