Alice McCall has entered voluntary administration, appointing administrators SV Partners.
Speaking on the decision, McCall cited the impacts of COVID-19 and unsustainable rental agreements as the reason for the decision.
"Due to the unprecedented effects that COVID-19 has had on our economy, as well as some unsustainable bricks and mortar rental obligations, I have had to make a necessary decision to edit down my business, with the objective of building a more sustainable business model for the future," she said in a statement.
The administration will see the closure of some of the brand's 14 stores as well as the redundancy of some staff, SV Partners executive director Ian Purchas said.
At present, the brand's stores and online website are trading as normal.
The news follows McCall's first venture into kidswear with Cotton On Kids, which was announced today.
The 'mini-me' range consists of three signature Alice McCall styles shrunken in size to create the collection which is exclusive to Cotton On Kids.
The three styles - the Cowboy Tears mini dress, Moon Lover mini dress and the Zen dress - come in six different colours and range in sizes 2-9/10.
All dresses in the Cotton On Kids x Alice McCall collection are priced at $79.99 and will launch on November 13.
Alice McCall joins other fashion labels that have called in administrators this year including Bardot, Colette by Colette Hayman and Seafolly.