Australia's textile industry has been hit with another wave of job cuts with the closure of the Brush-Fabrics Pty Ltd dyeworks in Abbotsford.

Around 80 workers from the company were told not to come back at the end of their shifts on Tuesday night, after the company announced that it been placed into receivership that afternoon.

Some workers had become suspicious of the company's financial stability after banks queried their latest pay cheques, reports the Herald Sun.

The company has admitted that workers have not been given termination notices, nor have they been given advice on the payment of their entitlements, although receiver Joseph Lobenstein said that they would be forthcoming.

Mr Lobenstein told the newspaper that although he did not know the full extent of the company's financial situation he was confident that the workers would receive their full financial entitlement.

State secretary of the Textile, Clothing and Footwear Union of Australia, Michele O'Neil, has hit out at the company's handling of the redundancies. She told the newspaper: "The workers have been treated with absolute contempt. They have been given no opportunity to find out what the situation is and have been left in the dark."

The union is reported to be trying to contact company secretary Allan Rutman for an explanation into the company's collapse.