Fashion label Alice McCall reportedly racked up more than $1 million in debt before collapse

Australian luxury fashion label Alice McCall had reportedly racked up a seven-figure debt before collapsing earlier this month.

It was confirmed on February 17 that the company was going into liquidation after attempts to tackle its debt failed.

A report has now emerged the brand had racked up more than a million dollars in debt, the majority of which was owed to the Australian Taxation Office.

READ MORE: Luxury Australian women's fashion brand Alice McCall collapses into liquidation

Retail trade press publication Ragtrader claims Alice McCall owes $677,922.93 to the tax office, as well as hundreds of thousands to landlords.

The company had boutiques in Melbourne, Sydney and Brisbane as well as online stores.

A spokesperson for insolvency firm Worrells, which has been appointed the liquidator, did not respond to 9news.com.au's request for comment.

Alice McCall was created by its eponymous founder in 2004, but its liquidation came after the brand struggled through the COVID-19 pandemic.

It entered voluntary administration in late 2020 but was unable to solve its debt issues.

"Despite attempts to restructure its debt and reduce its store footprint in 2020, the company was unable to overcome the challenges posed by the pandemic," a statement from Worrells last week said.

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