Parent company Xaphan Entertainment, LLC has struggled to regain it’s footing after being fraudulently licensed some properties last year.
Xaphan released the following statement regarding their closing today via Facebook:
It is with great sadness that we have to inform you that Xaphan Entertainment, LLC will be closing its doors at the end of the month of March. The cost of the ventures has exceeded the revenues for too long and unfortunately, we will no longer be able to keep up with them from personal funds. We understand that this causes many questions and concerns, but unfortunately, we just cannot keep up with the costs of the channel’s and their operations anymore.
This does means that all Roku Applications and websites working under Xaphan Entertainment will cease operation. For The Grindhouse Channel and Cartoon Cove month to month subscribers, you will no longer be charged for viewing. For Cartoon Cove full beta subscribers, you will be refunded for the remaining months of the beta within 6-8 weeks, and we will do our best to make that sooner for you as we have to reconcile the remaining terms of operation of the channel’s backend.
We apologize for this inconvenience, but after having numerous issues with Roku billing and advertising, as well as the numerous illegitimate and illegal applications we must compete with, we cannot feasibly continue filling the gap to continue these services.
We hope that you understand as we are a small business and our house and home come first. Thank you all for your participation in helping us fulfill one of our dreams and wish you all the best.
While Cartoon Circus is not specifically mentioned by name in the release, they do say all Roku applications. This was one of the best ad supported channels on the Roku even after the licensing issues were straightened out, and some of the content was reduced. Hopefully someday they will be able to re-evaluate and reboot.