Australian-born brand Skins has filed for bankruptcy with the Swiss Court.
A Trustee has been appointed to assume responsibility for the company with almost immediate effect.
Skins chairman Jaimie Fuller addressed the fallout in a blog post on the brand's site.
"My management team and I have left no stone unturned in an effort to avoid this. I apologise unreservedly to all those affected by it.
"SKINS as a brand will not disappear; the brand will merely change ownership; and those of you who love and already wear SKINS will still be able to buy the products.
"SKINS is a genuine pacesetter. We led the creation and manufacture of sports compression wear, and we pride ourselves on continuing to lead the sports performance category in terms of innovation and performance.
He blamed the demise on many contributing factors, with the roll-on effect of the global financial crisis as one.
"What has brought us to this point really started 11 years ago. When the global financial crisis (GFC) hit in 2008, I sold a portion of SKINS to a private equity firm. I also made a lousy deal.
"When the GFC was over, I had to get out of the private equity arrangement. To do so, we borrowed heavily, and with the help of a Japanese partner we managed to buy out the private equity shareholders.
"To my enormous regret, those borrowings have become unsustainable and while we have been working for some time now to try to avoid what is happening today, in the end there was no choice."