Around 60 staff have lost their jobs at the Australian Ksubi fashion label, which has been placed under receivership.
The trendy street brand was founded by George Garrow and Dan Single in 1999 and worn by the likes of supermodel Miranda Kerr and celebrity Nicole Richie.
On Tuesday, it was placed under the receivership of advisory firm Jirsch Sutherland.
In a statement, Jirsch Sutherland said it was assessing the label’s financial position, including “necessary rationalisation of overheads including staff at head office”.
A staff member who asked not to be named, told AAP on Thursday around 60 employees from the label’s head office were let go.
However, was hopeful about the future of the brand.
“It’s not over. All I can say is that … there are American investors are discussing with the Australian financiers.”
The brand’s seven retail stores in Melbourne, Sydney and Brisbane and its online store will continue to operate as the search for buyers for the brand begins.
“We are optimistic that a purchaser for the business will be found,” Jirsch Sutherland partner Andrew Spring said in a statement.
The label made headlines in 2001 after staging a provocative runway show where the designers set 200 live rats free.
Ksubi is the latest in a string of Australian labels to hit the skids this year, including Lisa Ho, Kirrily Johnston, Alannah Hill and Bettina Liano.