Creditors of failed menswear retailer Meccano are likely to be more than $5 million out-of-pocket after liquidators revealed the company has debts of $5.8m but assets of $490,000.

Meccano faced financial difficulties, including costly leases, with only three months of profitable trading after De Vere Investments purchased and took over the business in February 2016, the liquidators' report says.

Westpac bank will receive a chunk of the $588,000 it is owed and former workers owed $89,000 combined, and $90,000 owed to Inland Revenue, will be paid.

The retailer also owes unsecured creditors $5.1m, $2.5m of that in trade creditor claims, $104,000 in employee entitlements and related-party payables of $2.6m.

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KordaMentha liquidator Neale Jackson said there was no surplus in the administration, but it was too early to say if creditors would receive money owed.

"Unsecured creditors would only receive money if there's recoveries that we can make in the liquidation," Jackson said.

"We would expect to be able to report to creditors on those prospects in our next report which will be filed in six months' time."

Jackson and Grant Graham were appointed liquidators on Monday.

Meccano ceased trading in February when it was placed into voluntary administration.

Meccano managing director Vere Sharma told the Herald in February he was disappointed but the decision to put it into voluntary administration had not been made lightly.

"I'm committed to the clothing industry, and have been for 30 years," he said.

Despite an enormous amount of effort from staff, Sharma said Meccano was unable to adapt fast enough to what had been a trying time for many mall-based retailers.

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De Vere Investments owns other fashion labels including Ruby and Liam. Sharma said his other business dealings were not affected by issues with Meccano.

Meccano had 12 retail stores throughout New Zealand and an online store.