The former president and managing director of Greek casual-wear retailer Sprider Stores was arrested in Thessaloniki on Tuesday over debts to the state.
Nikolaos Varsamis, aged 51, is accused of owing the IKA Social Security Foundation over 1.15 million euros in unpaid contributions.
Sprider Stores went bankrupt last year, laying off more than 800 staff.
In the first half of 2013, the company posted losses of 25.22 million euros.
Sprider Stores was founded in Athens in 1971 and was listed on the Athens bourse in 2004.