A Wānaka-based woman once celebrated for turning $50 into a multimillion-dollar business empire is now facing angry investors upset at how recent financial problems have been handled.

Anna Ross founded the cosmetic brand Kester Black, which says it makes "natural nail care" and takes a "holistic approach to beauty".

In 2021, it was reported that the business had made more than $1.16 million in revenue in the past 12 months.

That same year, the Australian-registered arm of the business, Kester Black Pty Ltd, raised more than A$2 million from investors via equity crowdfunding platform Birchal. At that point, the company was valued at A$22 million.

However, the company entered voluntary administration on July 9. Hamilton Murphy was appointed administrator.

The New Zealand business was put into liquidation the following month, with Waterstone Insolvency appointed. Kester Black Pty was the sole shareholder.

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One investor, Tahnee Lucas, said they had been told investors would not get any of their money back.

"I invested close to NZ$3000 so will get nothing for that."

Hamilton Murphy would not confirm this but said interested parties would be sent more information soon.

Lucas said she had not been able to join a shareholders' call because the Zoom meeting was capped at 100 participants.

The business and assets of Kester Black Pty Ltd were sold at the end of July to New New New Pty Ltd, a company owned by Fergus Sully, whom media have previously referred to as Ross's "business and life partner".

The sale was for just over A$146,220. A 10 percent deposit was required, and then the remainder was to be paid in 12 monthly instalments.

The minutes of a creditors' meeting in mid-August show the deed of company arrangement would give priority creditors a full return of what they were owed, and unsecured creditors about 29c in the dollar.

In New Zealand, New New New Holdings is listed on the Companies Office with Ross as the director.

The New Zealand Companies Office lists Sully as the sole director of the Kester Black business.

The administrator's report said Kester Black Pty Ltd had reported trading losses over the financial years prior to the administration. It had not been able to keep up with its tax liabilities and owed the Australian Tax Office A$62,125.

Trading appears to have continued as usual, with nothing in the company's frequent social media advertisements to indicate any behind-the-scenes change - except for "angry" reactions and comments that appear to have been deleted.

Lucas said investors were given the idea that it was an "ethical, conscious company".

"But the fellow investors I have managed to speak to feel the way there was no communication from the company and the business has been sold to a new company with her husband as the director and kept trading is anything but ethical. Investors are upset and feel it's all been smoke and mirrors as we were sent communications about how the business was doing well throughout the period of our investment with positively geared company updates.

"There are concerns that the funds raised for the company may have been used for product development, with the new entity now reaping the benefits without any consideration for the original shareholders. It feels as though the company has evaded accountability, and despite accepting the risk of investing, the lack of transparency and communication is troubling."

Another investor said they had received positive updates for about three years but now the "rug has been firmly pulled out".

"No gratitude, no acknowledgement, no apology."

Anna Ross said she was not in a position to comment but would be in touch when she had information to share.

The Financial Markets Authority warns that equity crowfunding is risky and while investments might do well, people could also lose all their money.