Bailiffs seized crates of sex toys and lingerie from a Birmingham city centre store in an effort to recover tens of thousands of pounds.
The goods were taken from the Hustler store, in the High Street, under a court order obtained by a fittings company.
The store, part of Hustler Hollywood UK, is in one of the city centre's prime locations but has not opened for trading since November. However, the company is believed to be in talks to secure a re-financing rescue package, which would reposition the chain and overcome its difficulties.
If the deal goes through, Hustler in Birmingham could move out of the 6,000-sq ft flagship High Street store and into the Bullring.
High Court-appointed enforcement officers seized goods from Hustler Hollywood stores in Birmingham and London as part of a dispute with fitting and fixtures manufacturer Alu.
Bury St Edmunds County Court in Suffolk confirmed a hearing between Hustler Hollywood and Alu took place on September 19.
Alu, which is based in Italy, is thought to be owed tens of thousands of pounds by Hustler, which launched its Birmingham store in October 2004.
Bob Volpe, UK general manager for Alu, said it was regrettable the dispute with Hustler Hollywood had gone so far.
"It is a great shame it has got to this," Mr Volpe said.
"I think it's a loss for the people of Birmingham as it added a bit of colour to the High Street.
"But I had to do what was best for our company in the UK."
The first batch of clothes and toys was sold last week at auction in Hainault, Essex, to a single bidder for #10,000.
Goods from the Birmingham store are being catalogued and are expected to be sold at an auction house in Nottingham early next year.
Alan Smith, manager of Sherforce ? the enforcement firm which seized the goods ? said Hustler still had an opportunity to reclaim any unsold items.
He said: "Our enforcement officers entered the buildings with a warrant and took away a variety of objects and clothing, which are now being auctioned off.
"Our job is to ensure that businesses pay their debts. If this happens, then Hustler Hollywood will be able to reclaim the items that have been sent to auction. If not, they will be sold."
Last month Andrew Joseph, managing director of Hustler Hollywood UK, said the Birmingham store would reopen at the beginning of December with a new range of products.
However, it is thought delays in finalising the finance package postponed the re-launch.
The UK licence for Hustler Hollywood is held by hotel and property group Desilu founded by Mr Joseph's Cypriot father, Chris, and his uncle, Costas Josife.
The pair are believed to be worth #75 million and own about one million sq ft of property and hotels in London and Cyprus.
A source close to the company said it was unlikely Hustler Hollywood would reopen at its current Birmingham location, but had ambitions to open a smaller outlet in the Bullring.
However, a spokeswoman for the Bullring said the shopping mall had not been approached by the chain.