Skye Wheatley partner Lachlan Waugh's trading business is in financial trouble and has been hit with a nearly $1 million bill.

Skye Wheatley's business partner Lachlan Waugh has hit back, claiming his company Shopfit Co is in financial trouble after it went into external administration in August and was taken over by third-party insolvency specialists.

Despite a failed deal to repay nearly $1 million to creditors, Waugh says his business restructuring firm is still solvent.

The company entered into a small business restructuring plan to pay $927,000 to the Australian Taxation Office and a number of other small businesses and the Gold Coast Council, according to the Gold Coast Bulletin.

The publication reports that an administrator appointed to examine Shopfit's books found parties including Lachlan had borrowed $357,472 from the company.

Mr Stimpson's report mentions a property in the Gold Coast suburb of Tallahassee where Lachlan and Skye documented an extensive renovation on social media.

The report said executives were not provided with accurate financial records and lenders recommended rejecting the deal.

Rejecting the contract means the company is no longer under external management and cannot use the scheme to repay loans.

However, in a since-deleted Instagram story, Lachlan stated that the company was never under external management.

'There is no outside management, we have maintained control of the company the whole time, so where is the good publicity? Where is it?' Lachlan wrote.

Speaking to this week's publication, Lachlan said the loans the company had given him were to secure revenue from Shopfit.

'[Shopfit has] It has made substantial profits till the end of the September quarter and the balance sheet appears solvent,'' he said.

Despite a failed deal to repay nearly $1 million to creditors, Waugh says his business restructuring firm is still solvent.

'There is no outside management, we have maintained control of the company the whole time, so where is the good publicity? Where is it?,' Lachlan wrote in a since-deleted Instagram story

'Effective loan balance refers to the wages you have received from the company over the years it has accumulated.'

The company is a leader in completing major renovations for popular cafes, bars, restaurants and high-end brands including Red Rooster, Quicksilver and Sass and Bide.

Daily Mail Australia has contacted Waugh for comment.

The news comes after Skye Wheatley revealed she suffered from body dysmorphia after undergoing controversial fox-eye lift surgery and other procedures in Turkey last month.

The social media star, 30, cried in an emotional video posted on TikTok recently and admitted that the disease was 'probably why' and she feared her two sons would eventually suffer from the same condition.

Skye and Lachlan have two sons – Forest, five, and Bear, three.

The news comes after Skye Wheatley revealed she suffered from body dysmorphia after undergoing controversial fox-eye lift surgery and other procedures in Turkey last month.

'I know I'm probably mentally ill, I know I have body dysmorphia,' I'm a celebrity… get me out of here! 2024 winner said.

'I put too much pressure on myself to be perfect. It would kill me and break my heart if my kids went through that.

'I don't want them to go through that.'

He opened up about his failed childhood dreams and admitted he had 'daddy issues'.

'I wanted to become a famous singer at a young age. “I dreamed of becoming a famous singer, but the older I get, the more I doubt myself,” she said.