The fallout from TVSN’s closure - a small business owner’s perspective
Behind every business closure, there are other businesses, livelihoods and relationships affected. This is our story.
Last week, I was unofficially alerted to the very distressing news that TVSN was in trouble and preparing to launch a closing-down sale.
I was told that staff had been notified and that customers and suppliers would hear within a matter of days.
What I didn’t expect was that customers would be informed before suppliers.
Customers received an encouraging communication reassuring them that their orders would be honoured and suggesting they take advantage of the closing-down sale to stock up on Christmas gifts.
Suppliers, however, weren’t notified until Tuesday, the very day the news was going live on air.
And even then, it was a blanket email. Generalised, tone deaf, uninformative and, in my opinion, ignoring the terms of our own supply agreements.
As a brand with a long history and a wonderful relationship with TVSN, I found this particularly distressing.
We weren’t afforded the opportunity, or the dignity, of being personally informed about something that would have such a significant impact on our business.
It’s not just stock. It’s our livelihood.
Philosophy Australia is a small, independent, Australian-owned and Australian-made fashion business
We design and manufacture every garment here in Sydney, supporting a local network of makers, suppliers and contractors.
Around 90% of our production is made to order. We don’t manufacture thousands of garments and hope somebody buys them.
We make what our customers order. TVSN was one of those customers.
They are one of hundreds of wonderful retailers who stock Philosophy across Australia and New Zealand, but their orders were sizeable, and the impact of losing them will be felt.
We are owed tens of thousands of dollars for this season’s stock.
Stock that was made specifically for them, delivered three months ago, and which, to the best of my knowledge, has already generated sales exceeding the value of our outstanding invoices.
I know this because, after every television appearance, we receive detailed sales results. My buyer has always been wonderfully transparent, allowing us to analyse styles, quantities and size ratios so we could continually improve our offering.
Under our trading terms, the product remains our property until it has been paid for in full.
Yet that product is now being offered as part of a clearance sale.
I would much rather have been given the opportunity to collect our unsold stock, reduce their outstanding liability to us and protect our brand’s pricing integrity.
These are current-season garments, not unwanted or obsolete stock. To see them discounted in this way, without consultation, is another blow.
I am realistic enough to understand that the likelihood of recovering the full amount owed to us may be very low. But until the formal insolvency process and our legal position are clarified, we are left in limbo.
And limbo is a particularly uncomfortable place to be when you’re responsible for the livelihoods of others.
The relationships are what I’ll miss most
Despite my enormous disappointment in how this situation has been handled, I don’t want that to overshadow the many positive experiences we’ve had with TVSN.
Being part of the TVSN family has genuinely been a privilege.
My thoughts are with the buying and television production teams, many of whom I’ve known for years and enjoyed such lovely working relationships with.
And to the presenters and models who have showcased Philosophy so beautifully, thank you.
You brought our garments to life, shared our story and introduced us to women who might otherwise never have discovered our brand.
That is something I will always appreciate.
TVSN offered a unique shopping experience
Customers could see garments moving on real bodies, understand the fit, hear about the fabric and discover all those little details that make a garment special.
As a designer, I loved having the opportunity to explain why I’d created something, how it worked and what made it worth investing in.
It wasn’t simply selling clothes. It was sharing knowledge, building trust and creating relationships.
And I know those customers will miss that experience too.
To our TVSN customers, our door is always open
If you’ve discovered Philosophy through TVSN, we would absolutely love to welcome you into our own family.
You can shop directly with us through our online store, where we offer Afterpay as an alternative to TVSN’s four part payments, along with our own customer loyalty rewards program.
We already endeavour to show our garments in movement, explain their features and benefits, and help you understand their fit and versatility through our website and social channels.
Now we’ll be working even harder to amplify that experience.
Our Philosophy has always been easy wear, easy care, wear anywhere, and that isn’t changing.
Neither is our commitment to making every garment here in Sydney, with love.
We might not have a television studio, but we have the knowledge, the passion and the product. I’m more than happy to get in front of a camera to share it with you.
The ripple effect is enormous
Thankfully, we had not yet commenced production on TVSN’s order for next winter.
That order had already been placed, and we were preparing to start manufacturing. We’ve now managed to halt that process before incurring further losses.
For that, I’m incredibly grateful.
But the loss of those future orders, alongside the outstanding invoices, will undoubtedly affect our revenue and force changes within our business.
I feel extremely concerned and vulnerable.
Since the announcement, and following my interview with the Sydney Morning Herald, I’ve been contacted by countless other brands, across multiple product categories, who find themselves in similar situations.
We are certainly not alone
That’s what makes this so much bigger than the closure of one shopping network.
Behind every supplier is another business. Another team. Another set of wages, invoices, commitments and families.
Some will be large businesses with greater capacity to absorb the losses. Others will be small, independent operators like us, where tens of thousands of dollars can make an enormous difference.
When one business fails, the financial consequences don’t simply disappear. They ripple through the supply chain, affecting people who have fulfilled their obligations, delivered their goods and trusted that they would be paid.
And once again, we’re watching another established Australian retail business disappear from our landscape.
Where to from here?
I wish I had an answer.
At this stage, there is still uncertainty around the formal process, what can be recovered and what the coming weeks and months will bring.
What I do know is that this will mean change for Philosophy Australia
Not necessarily change we wanted, or change we anticipated, but change we will have to navigate.
I’ve always said that one of the greatest strengths of being a small, locally manufactured business is our ability to be agile, flexible and responsive.
We’re going to need every bit of that now
I also know that no small business survives without the support of its customers, its community and other small businesses.
So to everyone who has shopped with us, stocked us, championed us, shared our story or simply offered a kind word over the last few days, thank you.
To the TVSN team, particularly those who have lost their jobs and the careers and relationships they’ve built over many years, my heart goes out to you.
This isn’t how any of us wanted this chapter to end.
In the meantime, we will continue doing what we do best. Designing and making beautiful clothes here in Sydney, supporting our local makers, and looking after the women who choose to wear Philosophy.
One garment, one customer and one day at a time.
Shop small. Support local. Buy Australian Made.
With love
Ali x
