4Kids allegedly shut down the channel due the worsening economic situation at the time, including the dwindling financial situation of the company.
For those in the know, when it was still in its heydays, 4Kids was one of the most, if not the most, recognisable anime English dubbed channels. The channel is credited for popularising anime shows of the 2000s, including Pokemon, Yu-Gi-Yo!, Dragon Ball Z and One Piece. The channel ended in 2008. However, the company behind the channel shut down in 2017, after multiple financial intervention attempts.
The final broadcast of the channel was in December 2008, after 4Kids Entertainment announced the end of the channel a week earlier. At the time, the company claimed that the end of the channel was due to the worsening economic environment in the country. This had compounded on the already financially precarious state of the company, which was already laying off 15 percent of its staffers at the time.
Moreover, while the channel was lauded for introducing the Western audience to anime, by 2008, it was facing competition from other children’s channels like Nickelodeon, Cartoon Network and the Disney Channel. However, the company continued to have new life on CW as CW4Kids, which was later renamed to Toonzia. Around this time, 4Kids lost its licencing rights to most of the shows, but had continued to air.
The final broadcast of 4Kids TV on Fox was on 27 December 2008. On this day, 4Kids Entertainment announced that it would be laying off about 15 percent of its workforce, due to the worsening economic environment and financial situation at the company.
It is believed that there were multiple lawsuits which were filed against the company, which could have been the reason for its first bankruptcy application in 2010. After surviving the first bankruptcy, 4Licensing Corporation filed for bankruptcy again in 2017, which was the final nail in the coffin, as it marked the end of the company as a whole.