An Australian retailer has stitched up the rights to sell items from fashion label Ksubi.

The trendy street brand, worn by the likes of Miranda Kerr and Nicole Richie, was placed into receivership in December and 60 staff from its head office were sacked.

General Pants Co will sell Ksubi items after reaching an agreement with US based Breakwater Investment Management, which has been looking for a company to manage trade in the southern hemisphere.

“This new partnership gives the brand the best chance to fulfil its potential without any of the obstacles it may have endured recently,” General Pants Co chief, Craig King, said in a statement.

Ksubi made headlines in 2001 for staging a provocative runway show where 200 rats were released.

Australian fashion labels Lisa Ho, Kirrily Johnston, Bettina Liano, also ran into financial difficulties in 2013.

AAP