Debt-ridden knitwear manufacturer Coogi Australia, best known for its colouful sweaters, is to close with the loss of 200 jobs after administrators failed to find a buyer.

The Melbourne-based company went into voluntary administration in July owing more than A$25 million. Around 100 staff lost their jobs at the time.

Now the firm’s remaining employees will be made redundant next month as the firm winds down its operations.

Administrator George Georges said: "I am extremely disappointed at having to announce this most unwanted outcome which comes after protracted negotiations with a local company could not conclude a sale for the Australian operations.

"We are still open to the possibility of selling the operations but the reality is that is unlikely at this stage."