Shopping channel Create & Craft crashed off air owing millions in October, as report confirms extent of financial disaster for company.
- Viewers and suppliers left out of pocket.
- Administrators has been approached for advice as early as August.
The former Managing Director of the company that operated the Create & Craft TV channel has blamed the removal of the Winter Fuel Allowance for a drop in sales that caused the abrupt end of the channel in October.
Charles Samuels had been appointed as Managing Director of Hochanda Global in December 2023 after the original founders had stepped down. The shopping channel was carrying the burden of an expensive IT upgrade that had become necessary after the merger of Hochanda and Create & Craft TV channels in 2022.
Create & Craft suddenly switched to recorded programmes at the beginning of October and closed its order lines and website, leaving customers who had ordered immediately beforehand out of pocket.
Under new management, one warehouse was closed and postal fees were increased. However, the company incurred significant costs upgrading its IT and website systems, according to a report released by the Joint Administrators of Hochanda (trading as Create & Craft).
According to a report issued by the Administrators, Mr Samuels blamed the new government and removal of the Winter Fuel Allowance “reducing the willingness to spend within the Company’s demographic of customer”.
However, it’s been revealed that Hochanda had already sought urgent financial assistance in August, days after the Winter Fuel Allowance announcement had been made. The company was found to be insolvent and an attempt was made to sell the company and assets as a going concern.
The Winter Fuel Allowance is now only available to pensioners eligible for Pension Credit. However, payments continue in Scotland under a different name – the Pension Age Winter Heating Payment.
Customers were still able to order as trouble brewed
Despite the financial situation, until early October, customers were still able to place orders and payments were still taken. After the channel stopped accepting new orders, viewers complained on social media about the non-fulfilment of orders. At the time, the company declined to offer any support or advice.
On 25th October, after an interested party pulled out, the company went into Administration.
Millions of debts
Sky, Virgin Media and Arqiva are among the casualties in the media sector. Arqiva, who uplinked the channel to satellite and carried the channel on Freeview was left with £1.5 million unpaid by the company. In total, £5,770,342.69 of debts was racked up to unsecured creditors.
Unsecured creditors are not expected to receive any money as the company faces liquidation.
Over £1 million is due to HMRC.
What about customers?
The figure issued by Hochanda’s Joint Administrators at restructuring and insolvency company Leonard Curtis doesn’t include any claims from regular customers whose orders were not fulfilled.
Unlike in some other instances where a shopping channel has gone into Administration, there was no invitation, for example by way of a notice on the website, for consumers to make a claim. However, the Joint Administrators have already indicated that unsecured creditors, which would include customers, are unlikely to receive a penny.
Customers can, if they haven’t done so already, make a chargeback or Section 75 claim under certain circumstances. The Citizens Advice Bureau website has further advice…
What next?
The Create and Craft domain has been snapped up by Hobbycraft.
There had been no offers to save the television channel business.
Create & Craft and sister channel Craft Extra are just the latest in a line of shopping channel disasters. In the summer, new channel Seen On TV crashed off air just weeks after launching. In 2023, Ideal World fell into Administration. However, it was saved at the last minute by TJC, which acquired the brand. Ten years ago, shopping auction channels Bid TV, Price Drop TV and Speed Auction TV suddenly fell off air after the money dried up.
By: Marc Thornham | Image: screengrab of the former Create & Craft channel