Online grocery business Supie went out of business this morning after being placed in voluntary administration by its owner.
The Auckland-based grocer was placed into administration after a key investor stopped funding the business, leaving the business with about $3 million in debt.
PWC voluntary administrator Richard Nacey says the company, which employed 120 people, has run out of cash.
He said it was too soon to say whether the company owed money to staff.
"While it's had reasonably substantial growth over the last 12 months, that growth has almost flat-lined over the last couple of months and it has just not reached the scale that it needs to to operate profitably," Nacey said.
The grocer was set up two and a half years ago to introduce more competition into the grocery industry, but struggled to achieve the scale necessary to be competitive and profitable.
Earlier this year, it said it was under pressure from suppliers to raise its prices