The beauty sponge business is a new industry with a growing presence in the Netherlands and other European countries.
It started as a local market, selling the plastic-covered sponge that people would take with them to the spa or the gym.
It expanded in the 1990s when the sponge business started attracting international clients.
In recent years, it has expanded internationally to include beauty products sold in shops, restaurants and even on websites.
The sponge business had a peak of €4.8 million in the third quarter of last year, but revenue fell to just €0.8m.
The company is also the subject of a criminal investigation.
A spokeswoman for the prosecutor said: “The investigation has been ongoing for the last couple of weeks.”
The spokeswoman said the investigation started in the autumn of last years and continued to this day.
“We are waiting for the court order to conclude and the prosecutor’s report,” she said.
A spokesman for the company said: ”It is not a matter of speculation at this time that the investigation is closed.
“We are cooperating with the police investigation but there are no further updates as of yet.”
The spokesman said the company had no current plans to close its doors.
The investigation into the company began in the fall of last decade and was launched after the court ordered it to cease trading in the Dutch market.
The spokesman did not elaborate on what the court orders were.
The spokeswoman added that the company was cooperating with police.
The spokesperson said the prosecution had asked for a copy of the court decision to see what kind of penalties were in place.
“We have no further comment at this point,” the spokeswoman said.
The business has been operating since 1987 and is run by Dutch-born entrepreneur and former cosmetics salesman Thomas van der Meer, who has been in the business since 1989.
He said he was not interested in shutting down the business.
Van der Meers business has always been a niche market and he was trying to make money.
He said he had never planned to close it down and hoped that the criminal investigation would not result in a financial loss to the company.
“I hope that it doesn’t cost us anything,” he said.
Earlier this year, the company announced that it was to open an online store.