Canwest Global Communications is to close two E!-branded local TV stations and rebrand another as a Global Television affiliate as the broadcaster finally sheds its secondary free, over-the-air network.

Following a review of its E! channels begun last February, Canwest said it will shutter CHEK-TV in Victoria, BC and CHCA-TV in Red Deer, AB by Aug. 31, and return their broadcast licences to the CRTC.

Kelowna’s CHBC-TV will continue as a Global Television channel.

The two station closures will result in the loss of around 80 jobs.

Two other E! stations, CHCH-TV in Hamilton, ON and CJNT-TV in Montreal, were earlier conditionally sold by Canwest to indie broadcaster Channel Zero for $12.

Canwest Broadcasting president Peter Viner in a statement said ‘a number of parties’ expressed interest in the Kelowna, Victoria and Red Deer stations, but none produced a firm business plan or financing to acquire the stations before Aug. 31, when their current broadcast licences expire.

‘From the outset, we said that closing stations would only be considered as a last resort. We recognize that the decision to close CHCA and CHEK will negatively impact the employees of those stations and the communities that those stations have served so well,’ said Viner.

Eliminating its secondary E! network is part of a larger plan by Canwest to shed costs and assets to deal with a mounting debt load and a TV advertising downturn.

The broadcaster also continues crunch talks with senior lenders and U.S. bondholders to recapitalize the company and stave off bankruptcy protection.