ABC managing director Mark Scott said the bedrock of the ABC stores, book, CD and DVD retailing had fundamentally changed and the thirty-five year old chain could not trade profitably into the future.

Mr Scott said the ABC was not prepared to take money out of its broadcasting operation to fund an unprofitable retail venture.

Up to 300 staff will lose their jobs as a result of this decision as the shutters come down on the network of 50 stores and 78 ABC centres within other retailer outlets around Australia.

Ballarat has one ABC Centre in Bridge Mall, believed to employ about eight workers, with managers unable to comment of the situation.

A statement released by Collins Booksellers said ABC Centre Franchising License will be cancelled by February 5, 2016.

“Our 20 stores with ABC Centres received notice this morning of the cancellation of their ABC Centre Franchising License effective Friday, February 5, 2016,” the statement said.

“We are in continuing discussions with the ABC in regards to whether our shops will continue to operate as ABC branded outlets after this date.”

The closures follow $254 million in funding cuts to the ABC's budget, which has already resulted in the loss of more than 400 jobs at the broadcaster.

The stores will gradually close depending on lease terms, but Mr Scott said they would likely trade through Father's Day and Christmas.

In an interview with the ABC's AM program, Mr Scott said this decision stopped what would be "inevitable losses in years to come."

"We are not going to take money from broadcasting to prop up these stores," he said.

The ABC will instead focus on online sales of its books, DVDs, music and merchandise through the its ABC Shop Online.

"This strategy will create a more cost effective, nimble and flexible approach to servicing customers,” ABC commercial director Robert Patterson said.

The ABC has revealed its plans to exit the retail business as it grapples with the fallout from its decision to allow convicted criminal Zaky Mallah into Q and A's live audience last month.

Prime Minister Tony Abbott banned frontbench ministers from appearing as guests on the program after criticising its decision to feature Mr Mallah.