The Australian company behind celebrity fashion lines for Dita Von Teese and Shane Warne has entered into voluntary liquidation.
Melbourne-based Lime Door Brands appointed SV Partners' Michael Carrafa as liquidator last Friday.
A meeting of creditors is scheduled to take place on September 19, where a report into the affairs of the company will be presented.
When contacted by www.ragtrader.com.au, Lime Door Brands chief executive Michele Hamdorf stressed the voluntary liquidation did not reflect the company's trading performance.
Hamdorf, who is listed as a major creditor to the business in liquidator documents, said the decision to appoint SV Partners was due to failed negotiations with three seed capital partners.
Hamdorf said she had attempted a buyback of the business earlier this year due to unfavourable terms with investors. It is understood a separate entity will now manage and grow existing brands.
"If there is one lesson I can pass on to the industry from this, it is to choose your partners wisely," Hamdorf said.
"This is a partnership dissolution and a technical deadlock after months of negotiations...the growth curve of Lime Door Brands has never been stronger."
The development comes a month out from a local promotion with burlesque star Dita Von Teese, who is scheduled to launch her debut dress range during Melbourne's Derby Day.
Lime Door Brands is also a finalist in WGSN's 2011 Global Fashion Awards, which is set to take place in New York on October 20.
The company has been recognised as a 'Breakthrough brand or retailer' for its work on the Spinners by Shane Warne line, which is stocked at Target and set for expansion across India and the UK.
Hamdorf said all brand initiatives will go ahead.
For more details on the liquidation, pick up a copy of Ragtrader's October 7 edition.