Luxury Australian fashion label Arthur Galan AG has been put under voluntary administration.

The announcement was made on Friday, when founder and designer Arthur Galan took to his personal Facebook page to announce the move.

“I feel very sad today, as I have had to put my family-owned business into administration,” Mr Galan wrote.

“Everyone is aware that the retail industry is challenging and I have tried very hard to make it work, throwing everything I have into it. Unfortunately I have had to make this tough decision.”

The brand’s financial difficulties are being attributed to its rapid growth over a short period of time.

According to retail analyst Brian Walker, luxury brands like Arthur Galan with a high price point are highly affected by the fluctuations in the Australian dollar, not to mention high rents and the introduction of chains Zara and H&M.

The label, best known for its tailored mens and womenswear, was often sported by red carpet celebrities including Nicole Kidman, Rebecca Judd and Jennifer Hawkins.

Having garnered a cult following, the brand was being stocked by 22 stores, and by its department store partner Myer; however, due to poor sales, a number of the stores have been forced to shut their doors.

Though word got around earlier this year that AG was looking for additional investment partners, sources cited by The Sydney Morning Herald claim the news of administration came as a complete surprise.

It’s not all doom and gloom however; Mr Galan confirmed that he will be staying on with the brand in a creative role, with a vision to return the label to the “AG you all remember”.

“The brand has been sold and the new owners have decided to return to where it all started – menswear,” he wrote.

Myer’s ongoing support for the brand was also confirmed in a statement released following the announcement.

“We have worked closely with Arthur over the years and we will continue to be a supporter of the business under the new owners,” a Myer spokeswoman said.

Mr Galan acknowledged and thanked his staff, which he says have been an integral part of the brand and Arthur Galan family “in a time that is very difficult for all involved”.