The Identity women's clothing chain owes the bank $2 million and receivers, unable to find a buyer for the business, are shutting it down.
Nine of its 16 stores have already closed.
Identity was started in 1985 and its website claimed it had "grown to become one of the leading fashion retailers in New Zealand".
However after a significant downturn in business its directors David, Martyn and Pauline Winter believed it could no longer continue to trade and BNZ appointed receivers in July.
Those receivers, William Black and Kare Johnston, released their first report yesterday and said the business had "suffered from the current difficult trading conditions in the retail apparel industry".