Sad truth behind Lily Allen's controversial return: Her clothing firm has gone bust
But it seems that singer Lily Allen’s successful return to the world of music has come at the perfect time – for her much-hyped bid to become a big name on the high street has ended in failure.
The Mail on Sunday has learned that Lucy In Disguise LLP, a fashion business that Lily, 28, established with her elder sister Sarah Owen, has been forced into liquidation, owing thousands of pounds to a leading manufacturer.
Failed: Lily Allen (left) and her sister Sarah during the launch of their business venture which has now gone into liquidation
Aurora Fashions, whose brands include high street favourites Coast, Oasis and Warehouse, was granted a compulsory winding up order against the company in the High Court earlier this year.
The news will be seen as a blow for Lily, whose video to accompany her latest single, Hard Out Here, is at the centre of a race row.
It features a number of scantily clad black dancers ‘twerking’, while the white dancers who appear alongside them are more modestly dressed.
Lily famously announced in 2010 that she was quitting the music industry and instead turned her attentions to her business venture.
Her new career was even the focus of a three-part Channel 4 documentary called From Riches To Rags. Part of the sisters’ plan included selling and hiring out vintage outfits by Chanel and Yves Saint Laurent.
They also wanted to sell other expensive garments, and include a VIP area within the Lucy In Disguise store. But the series, which charted their efforts over a 12-month period, quickly revealed them to be under-prepared.
Controversial: The pop star's new video Hard Out Here is in the centre of a race row
Fashion guru Mary Portas, who acted as their mentor on the programme, voiced serious concerns, in particular that the concept of hiring out vintage clothing was flawed. She also criticised the decision to located the shop near the Royal Opera House in Central London.
The store was launched in March 2011, but within months it had moved to cheaper premises in Soho amid rumours that it was struggling to make a profit. In August 2011, Lily, by then expecting her second child, announced she had handed over the reins to Sarah, 33.
Richard Glanville, Aurora’s chief financial officer, told The Mail on Sunday that his company was still owed £12,000 and said it had been impossible to settle the matter without taking legal action. The original bill of £100,000 was only paid ‘in dribs and drabs’ over 18 months.
‘We had to make numerous phone calls and send several letters to chase up payments,’ said Mr Glanville. ‘It has been a very drawn-out affair and we gave them every opportunity to pay the money back before applying to put it into administration.
Talking point: Lily's voice has already melted the hearts of millions this Christmas as the backing track for the festive John Lewis advert
‘I don’t think Lucy In Disguise has been particularly successful because they have not been able to pay their bills on time. The remainder is quite a small sum, but we have been forced to take this course because we can’t get hold of anyone to settle the debt.’
The sisters also launched a second business, Lucy In Disguise Collection Ltd, reportedly to sell clothes they had designed themselves. It never filed accounts and was dissolved last month and struck from the Companies House register.
The shop founded by the sisters is still trading in Soho under the name Lucy in Disguise, London, but has a new ownership structure that does not include Lily.
The star’s return to music is so far proving successful. Her version of Keane’s Somewhere Only We Know is on course to top the Christmas charts after it was used as the soundtrack to the John Lewis advert.
A spokesman for the singer said: ‘Lily is no longer involved in the shop and has not been since 2011.’
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