The Ultimo underwear firm set up by Michelle Mone is to cease trading in the UK. The Conservative peer, now known as Baroness Mone of Mayfair, established the lingerie brand in 1996.
The firm achieved international success after actress Julia Roberts reportedly wore an Ultimo bra in the hit film Erin Brockovich. Lady Mone left the company three years ago after it was taken over by a large Sri Lankan apparel firm, reports BBC.
The firm announced that, following an extensive review of the business, the operation in the UK will cease trading. Staff at the Ultimo headquarters in East Kilbride have been informed, with a formal redundancy consultation now underway with the 11 employees at the site. Retail partners and suppliers have also been told of the decision.
An Ultimo spokesman said: “The last few years have been extremely challenging for Ultimo, driven by increasing competition in the market and more cautious consumer spending due to the uncertainty surrounding the UK economy over the last 18 months.
“Having reviewed the business’ performance over the last three years as well as future prospects and considering the retail environment within which the business is operating, the board has, with regret, decided to cease operations of the Ultimo business in the UK.”
The spokesman added the company “would like to thank all staff, customers and suppliers for their commitment, support and loyalty to the Ultimo brand over the years”.
Ultimo’s UK operations will be wound up at the end of June, with the company pledging to honour financial commitments with suppliers and partners.