"We are saddened by the recent news surrounding the college admissions allegations", the company said in a statement to the trade.
The channel's parent company, Crown Media Family Networks, issued a statement Thursday revealing it has stopped development of all productions involving the "Fuller House" star.
On Wednesday, the "Full House" star was taken into custody over her alleged connection to the scheme.
Giannulli founded the Mossimo brand with $100,000 borrowed from his father, according to the Hollywood Reporter. Loughlin and her husband, fashion designer Mossimo Giannulli, are accused of paying bribes to secure their daughters' admissions to top college programs.More news: Marvel's WHAT IF Animated Series Joins Disney+ Streaming Service!
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One day after receiving the go-ahead to return to Vancouver and resume filming her various Hallmark Channel projects, Lori Loughlin has been dumped by the company.
Chris Pizzello/Invision/AP Actress Lori Laughlin and her daughter Olivia Jade Giannulli at an event for Crown Media Family Networks, which owns the Hallmark Channel, in Beverly Hills, California, in 2015. She appeared in Los Angeles federal court Tuesday looking visibly exhausted, before posting $250,000 bail and surrendering her passport.
Earlier this week, Loughlin was arrested by the Federal Bureau of Investigation after being accused of participating in a nation-wide college admissions scheme. In February, the season six premiere of "When Calls the Heart" was watched by a series-best 2.5 million viewers, putting it behind only "The Walking Dead" in Sunday night cable dramas.
Felicity Huffman ("Desperate Housewives", "American Crime") was among other prominent parents, including a lawyer, doctor and hedge fund manager, indicted in the scam. It's quickly moved to respond to any flare-ups, such as removing a gift wrap from circulation after one person complained of seeing a swastika in its pattern.
While Stewart may exemplify her business, Loughlin isn't the only engaging star that Hallmark boasts.