Fairfax reported that employees had been told its owner, Yes Retail, had decided to stop trading and their employment was being terminated.
The channel's presenters included television personality Mike Puru.
A letter to Yes Retail staff, published by Fairfax, said the firm hadbeen facing financial difficulties and was dealing with losses of roughly $20 million and a growing number of creditors.
"The directors and senior management have been trying their best to secure funding to cover the significant losses, but a potential lifeline deal has fallen through at the last minute due to events outside the control of the company," it said.
As a result, the letter said, the company's arrangements with Sky Television and Freeview channels would end this month.
"As a result of this decision, we are formally advising you that your employment will be terminated as of today as we do not have the funds to have you continue to work."
A Yes Shop staff member told the Herald the situation was an "internal matter" that the company was not commenting on.
