The Herald reports that the Serious Fraud Office (SFO) is investigating the failure of clothing and textile manufacturer Lane Walker Rudkin, who also owned the former Bouzaid and Ballaben clothing factories in Greytown and Pahiatua.
SFO director Grant Liddell said his office had launched an investigation following a complaint from the LWR group's receivers.
The century-old Christchurch company collapsed in April owing a total of $121 million.
Over $111 million of that is owed to Westpac.
Liddell said the receivers claimed LWR had misrepresented its financial strength to Westpac in order to borrow from the bank, and if Westpac had known the true position it would not have lent so much.
In his first report in July for the parent entity Lane Walker Rudkin Industries, joint receiver Stephen Tubbs of BDO strongly criticised the company's management.
"The standard of financial reporting and corporate governance have, in our view, been inadequate for a company of this size and have been significant factors in the company's underperformance and entry into receivership," he said.
Cold comfort for the 230 staff who have lost their jobs as a result of the collapse.