Federation Clothing, the New Zealand-based streetwear wholesaler and clothing label, has been put into liquidation due to its unsustainable debt amounting to $1 million.

The company, which has been in business for 15 years, has been put up for sale by owners Jenny Joblin and Nick Clegg, TheRegister.co.nz reported.

Joblin and Clegg appeared last December in the Auckland District Court for allegedly trying to defraud customs.

The three companies that Federation Clothing have been working with or have previously worked with, Laundromat Collective Limited, Public Gallery Limited and Only Found You Limited, have also been put up for liquidation.

An insolvency report highlighted the clothing company’s financial strain, which inevitably led to the liquidation. The report revealed Federation Clothing owes more than $1 million to ASB Bank. The company also owes money to unsecured creditors, an amount of $2,637 owed to employees in holiday and redundancy pay and $11,000 to workers at its Laundromat stores.

The Federation Clothing company will continue to trade but it will be under the control of the liquidators until further notice.