Australian womenswear designer Johanna Johnson has spoken out against allegations she underpaid employees.
The designer's namesake business has been placed into administration.
In a post to the brand's Facebook page last week, it was claimed the process would restructure the brand for international expansion.
"Johanna Johnson has decided to relocate her operational headquarters to the United States. It is very much business as usual," the statement read.
"All manufacturing and local client sales will remain in Sydney as we continue to deliver our luxury products locally and internationally, and prepare to launch our new collection in Los Angeles in the following weeks.
This is a continuation of our ongoing vision for the brand which we have been steadily actioning over the last few months.
"This restructuring will greatly benefit our local clientele by way of continued and greater support from our overseas head quarters, greater availability through local and international retailer expansion, and value added exposure to our international platforms and shows.
To facilitate this expansion the Australian company will undergo a process of administration as the management operations are transitioned to the US head office.
"This is simply an internal process and we are very excited for the possibilities this will bring for both the brand and our treasured clientele as we continue to deliver our ‘Made in Australia’ product to the world."
However, the company is now at the centre of a legal tussle over claims it owes former staff members tens of thousands of dollars.
These include entitlements, superannuation and one individual claim of more than $35,000.
The brand defended against these allegations when raised by a Facebook user.
"The story is generated from an ex-nanny," it stated.
"If you read the details of our statement clearly you will understand the true story.
"These unsubstantiated claims are being dealt with through the appropriate channels."