An investor in the failed retailer Andrea Moore has complained to the market watchdog about a capital raising the company undertook 18 months before its collapse.

Andrea Moore & Co was put into liquidation by its shareholders on January 8 and was also placed into receivership by secured creditor the BNZ on the same day.

Directors Andrea Moore and partner Brian Molloy attributed the demise of the women's fashion retailer to large-scale construction and traffic roadworks outside five of its seven stores and the late delivery of a significant amount of stock.

But an initial receivers report released by McGrathNicol in March found the clothing chain had "significantly overstated" the value of inventory on its balance sheet and in its stock system.

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Now a six-monthly report by the liquidators Insolvency Management has revealed the company is also the subject of a complaint to the Financial Markets Authority.

"We are aware a complaint has been filed with the Financial Markets Authority (FMA) regarding the capital raising.

"As yet we have not had any communication from the FMA regarding this complaint
and are anticipating further information on this matter," liquidators Keith Harris and Wayne Deuchrass said in their report.

Harris told the Herald today that an investor had filed the complaint.

An FMA spokesman confirmed it had received a complaint but would not say what it was about, citing confidentiality.

"The FMA can confirm it has received a complaint about the Andrea Moore capital raising. All complaints are confidential."

Andrea Moore & Co raised $750,000 in August 2016 through crowdfunding website Snowball Effect.

At the time it said 2016 revenue was $4 million and pre-tax earnings were $300,000, while for 2017 revenue was forecast to grow to $4.8 million and earnings before interest, depreciation and amortisation (ebitda) to $600,000.

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The funds raised were to be used for working capital and fund its expansion, including selling its I AM range in 30 Farmers stores.

New shareholders were offered rewards including gift certificates, shareholder events and tickets to New Zealand Fashion Week for buying into the business.

The company also said over the longer term it was aiming to provide value to shareholders in the form of dividends and capital value appreciation.

The liquidators report shows there have been 43 creditor claims so far to the value of $2.49m of which $2.08m was from six secured creditors.

Harris said the final receivers report had yet to be released but was likely to come out soon.

The receivers have reported there will be no funds available for unsecured creditors.

The liquidators said they were unable to say when the liquidation would be completed due to matters including the FMA complaint and they were awaiting the receivers to finalise the receivership.