Australian designer brand Shakuhachi is at the centre of an insolvency scandal.
A Fairfax report has claimed the brand's founder, Jessica White, could be pursued for claims of trading while insolvent.
The investigation revealed the brand was placed into liquidation in 2015.
Liquidator Andrew Spring, from Jirsch Sutherland, is still in the process of liquidating the business.
It is understood the brand potentially owes almost $1 million to more than 80 creditors.
According to Spring, at least $476,297 could be claimed as trading while insolvent.
Spring sent a report to the Australian Securities and Investment Commission detailing potential breaches of director duties.
The brand and online store was purchased by Loft HK Limited in 2015.
According to Fairfax, White appears to be connected to the brand through Emporium Clothing Pty Ltd, an additional company of which she is director.