Around 60 staff members from fashion label Ksubi have lost their jobs after the Australian fashion label was placed under receivership.
The trendy street brand was founded by George Garrow and Dan Single in 1999 and worn by the likes of supermodel Miranda Kerr and celebrity Nicole Richie.
On Tuesday, the label was placed under the receivership of advisory firm Jirsch Sutherland.
In a statement, Jirsch Sutherland said it was assessing the label's financial position, including "necessary rationalisation of overheads including staff at head office".
A staff member who asked not to be named, told AAP on Thursday around 60 employees from the label's head office were let go.
However, he said he remained hopeful of the future of the brand.
"It's not over all I can say is that...there are American investors are discussing with the Australian financiers."
The brand's seven retail stores in Melbourne, Sydney and Brisbane and its online store will continue to operate as the search buyers for the brand begins.
"Due to the strong local and international reputation of these three brands, we are optimistic that a purchaser for the business will be found," Jirsch Sutherland partner Andrew Spring said in a statement.
The label made headlines in 2001 after staging a provocative runway show where the designers set free 200 live rats down the runway.
It is the latest in a string of Australian labels to hit the skids this year, including Lisa Ho, Kirrily Johnston, Alannah Hill and Bettina Liano.