Investors in a Milton wool mill are unlikely to be reimbursed through the company's liquidation.

Receivers say Bruce Woollen Mill Ltd owes just over $4.7m.

About a million dollars is owing to secured and preferential creditors, including employees and Inland Revenue.

But the majority of the debt relates to shareholder loans and unsecured investments.

The company's assets are being sold but they're not expected to generate enough money to cover liabilities.

A liquidation hearing is scheduled for the High Court at Dunedin on the 3rd of March.