The Serious Fraud office has launched an investigation into the affairs of the Lane Walker Rudkin group.
The clothing manufacturer collapsed in April this year, owing Westpac Bank about $120 million.
The company was placed into receivership earlier this year. In October, the receivers asked the SFO to investigate its collapse.
SFO director Grant Liddell says the receivers claim Lane Walker Rudkin misrepresented its financial strength to Westpac to borrow money.
Mr Liddell says the investigation is in its early stages and will probably take several months to complete.