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Hip-hop label Dawn Raid has gone into liquidation with admissions by owners that bad business decisions led to the demise.
The company started out as a clothing label at the Otara flea markets and expanded over 10 years into a multi-layered entertainment firm, representing and recording top local hip-hop artists, producing a fashion range and running a graphic design business.
Among those signed to Dawn Raid were platinum and gold selling artists Aradhna, Savage, Adeaze and Deceptikonz.
Liquidators are now considering whether the artists' contracts can be assigned to any company that may wish to take over the business.
Dawn Raid founders Andy Murnane and Danny "Brotha D" Leaosavai'i, who put their companies into voluntary liquidation, yesterday described their business ventures as "an exciting and fun journey for us, our artists and our dedicated fans over the last 10 years".
"However, it's a sad day for all involved and we want everyone to know that we view Dawn Raid as a success and we look forward to new opportunities in the future," said Brotha D.
They blamed a downturn in the label's revenues for the demise. They said the downturn was a result of a shift in the local urban music market, compounded by their company's high overhead structure and increased activity in illegal music downloads.
Mr Murnane said the company had spent the past two years expanding into Australia when "we should have been consolidating our local operation".
Work began yesterday to examine the accounts of seven insolvent Dawn Raid companies.
A liquidator said it was too early to say how many unsecured creditors were owed money and whether they would see any funds.
The Inland Revenue Department - which has previously applied to liquidate the companies - is the preferential creditor, with a number of secured creditors next in line for any payout from assets.
Liquidator Peri Finnigan said any pay day for creditors would depend "very much" on the ability to sell assets such as sound equipment, musical instruments and computers. Physical assets removed from the company in March were in safe storage and insured.
The liquidation would also explore the possibility of assigning the existing artists' contracts to another company.
