Several students contacted by Ragtrader Online, none of whom wished to be named, said tension at the school had reached its height last month when it was acquired by an offshore company called Sineod.
As reported in the November 6 edition of Ragtrader magazine, the acquisition saw Sineod cease a licensing agreement with Esmod International, a fashion education provider based in France, and rebrand the academy to Australian School of Fashion.
Meridian Group, which operated the nine-month-old school, appointed administrators yesterday afternoon in the wake of mounting debts.
Students denied reports that members of the school had been barred from collecting their belongings.
"I arrived at the school this morning and there was a notice up on the door from administrators," one student said. "That was how we found out about the school closing. [The administrator] was there but he did let us come in and grab our things."
"It's just been a nightmare for us. First the whole changeover from Esmod and now arriving [at school] a week before our end of year parade and finding this."
The student said most pupils were part-time, with roughly 26 students across two main classes and 50 students in patternmaking lessons held on Monday and Tuesday evenings.
Another student said teachers at the school had promised they would do their best to secure all necessary transcripts and accreditation information for them. This accreditation would not be recognised under the Esmod International banner however, since licensing ties had been cut before the school went under.
It is understood the licensing fee for Esmod International is AU$81,000 (€50,000) per annum. Part-time students at its Australian arm paid $10,000 for their first year and would have paid $15,000 for their second year.
One student was worried about an international patternmaking teacher employed at the school, who had signed a four year contract when it first opened earlier this year.
"He's got 30 days to find another company to sponsors him or he's out," the student said. "It's just be devastating for us all."
For more on this story, pick up a copy of Ragtrader's November 20 issue.