Jeans Label Bettina Liano In Financial Strife

Corporate administrator Ferrier Hodgson has taken control of the company and is undertaking an urgent assessment of its financial position.

Administrator John Lindholm wrote in a letter to creditors sent last Friday that he and fellow administrator Brendan Richards now controlled the 28-year-old company's operations.

"The company's director has been requested to prepare a statement about the company's business, property, affairs and financial circumstances," Mr Lindholm wrote.

The iconic Australian mens clothing store brand currently employs 90 staff throughout Australia. It has seven boutiques in Melbourne, Sydney and Perth. Bettina Liano clothing store are also distributed throughout the rest of Australia, New Zealand, Indonesia and Malaysia by over 120 stockists.

The brand became well-known for its sharp tailoring and ultra-skinny jeans, with a pair of their classic Ace indigo jeans, famous for its slimming ability, being a must-have item for all fashion-conscious women.

Celebrities like Lady Gaga, Sophie Monk, Elle McPherson and Liz Hurley have donned the brand, and even Prime Minister Julia Gillard was recently photographed wearing a white blazer by Bettina Liano.

Ferrier Hodgson's Suthesh Jeyakandan said it was not clear whether there would be store closures or job losses.

"We are going through the financials of each store," he said.

However according to the circular, while it is "business as usual", no refunds or gift vouchers can be issued.

A circular to employees also sent out last Friday said as the investigation proceeds their employment would remain the same.

"You will no doubt have concerns about your future and because my work is still at an early stage, it is too early to determine what the future might be," Mr Lindholm said.

Ferrier Hodgson said there would be a special creditors' meeting on July 20.

Bettina Liano is yet to make comment, however its Twitter account said their Spring/Summer collection would launch on Wednesday.