New Zealand streetwear brand Federation is the latest designer label to go bust.
Federation Clothing and Laundromat Collective, owned by Jenny Joblin and Nicholas Clegg, have been placed into liquidation.
Laundromat Collective operates four Auckland stores, stocking Federation Clothing merchandise.
The liquidation involves a number of related companies, including Public Gallery and Only Found You.
Insolvency documents filed with the Companies Office (NZ) yesterday revealed ASB as secured creditor with over $1 million owed.
Unsecured creditor claims were believed to be around $379, 359.
Liquidators attributed the failure of the businesses to a number of factors.
This included the seizure by New Zealand Customs of a large shipment.
A short term loan to release the shipment was called up by the secured creditor.
Gross profit margins were also eroded due to increased competition, lower pricing in the market and currency fluctuations.
There were also material debtor disputes in Australia.
The withdrawal of product from a large retail chain and its re-instatement at a discounted rate had adverse affects.
Liquidators are attempting to sell the businesses as a going concern.
Federation Clothing launched in 2000.