It was revealed on Tuesday Foundry, which has campuses in Launceston and in Hobart, failed to pay its staff its superannuation entitlements and had missed at least one pay cycle.

Founder Chris Billing hit back at what he described as misinformation and inaccuracies in the speculation surrounding the company and said while they had come up against challenges, issues had been communicated with staff and since rectified.

Mr Billing also acknowledged the company had experienced some hardship earlier in the year that resulted in it being unable to fulfil its superannuation requirements for its employees.

He said staff and the regulator had been communicated with regarding the financial difficulties facing the education provider, which he said was due to a myriad of issues including missed or delayed funding or investment opportunities as well as a marked decline in enrolments.

"We have seen a decline in enrolments over the past 18 months, but it's proportionate to the decline seen at other higher education institutions, which has been well documented," Mr Billing said.

Foundry has a fluctuating staff base depending on what courses are running but it's always between 30 and 50.

Mr Billing said at the moment there were just under 40 staff members.

Enrolments also attract between 100 and 200 students across its creative and digital industries courses such as content writing, design, photography and interior design.

Mr Billing said Foundry relied on a mix of funding sources, including private investment and government grants, such as the ones it received from Skills Tasmania for its vocational courses.

It also relies on the fees paid by students, which can come in two ways, through Commonwealth-supported places or fees paid in full.

Mr Billing said Foundry had a partnership with the University of Tasmania, along with Swinburne University.

Opposition TAFE Minister Michelle O'Byrne said the issues at Foundry showed it was more important now than ever that the state government invest in TasTAFE.

She urged the government to invest in TasTAFE over partnering with for-profit training organisations.

"Foundry's failure to pay workers entitlements does little to instil confidence from industry in our VET sector," Ms O'Byrne said.

However, he said Foundry had worked its way through the challenges and would not become another "start-up statistic."

"A lot of start-ups fail, but that is not where we are, we will not become one of those statistics," he said.

Mr Billing said students should not be concerned about the organisation's ongoing viability and was committed to delivering new course pathways.