The administrators of Retail Adventures - owned by Kathmandu founder Jan Cameron - have informed the corporate watchdog of possible breaches of directors' duties at the company, with investigations revealing "compelling evidence the company traded while insolvent".
Directors facing possible action include Ms Cameron.
The administrators have said Retail Adventures' professional indemnity insurers "have been put on notice regarding the administrators' intention to lodge a claim under the directors' and officers' liability insurance policy".
The administrators have also informed the Australian Securities and Investments Commission under section 438D "of the administrators' preliminary view that breaches may have taken place".
The information was revealed in records of the committee of a creditors' meeting - held earlier this month - that was posted on the Deloittes website on Tuesday in response to criticism about the handling of the administration.
Last month litigation funder IMF said it intended to fund legal proceedings to recover losses incurred by unsecured creditors of the company who are owed $165 million.