BESIEGED fashion retailer Gasp is facing liquidation after a logistics company applied to the Supreme Court to have it wound up over unpaid bills.

Australian Air Express, a partnership of Qantas and Australia Post, is pursuing the company over a $16,729 debt for courier services provided to Gasp Jeans Chadstone, an entity of Gasp Jeans Australia.

But the retailer, which gained international attention after an email catfight with a disgruntled customer went viral in September, has denied it is in financial strife.

Gasp general manager Eddie Yilmaz said Gasp’s finances had "never been better".

He claimed Gasp had been overcharged by AAE and was withholding payment pending the outcome of a VCAT hearing challenging the validity of the invoice.

"While the assertions are that the company is in financial difficulty, it is not the case, it is the opposite,’’ Mr Yilmaz said.

"We’ve never been in a better financial position than today and we’ve got several new sites planed for 2012."

He said the company expected AAE’s application to have Gasp liquidated would be struck out because the writ named Gasp Jeans Australia instead of Gasp Jeans Chadstone.

"We are certainly not insolvent or anywhere close to, the application will be set aside,’’ Mr Yilmaz said.

Earlier this month, the chain swallowed its pride and apologised on television for its poor customer service in the wake of September's email scandal.