Lucy in Disguise LLP goes into liquidatio​n

Lucy in Disguise, the clothing line owed by British singer Lily

Allen and her sister Sarah Owen is supposedly bankrupt and being forced into liquidation.

According to sources at the Mail Online, Lucy in Disguise's financial backer Aurora Fashions, who brands include Oasis, Warehouse and Coast, was given a 'compulsory winding up order against the company in the High Court' beginning this year. The fashion company reported that it was pushed to undertake legal action after Lucy in Disguise was unable to pay back a 100,000 pounds debt in time. Reportedly, the company still owes Aurora 12,000 pounds.

Aurora’s chief financial officer, Richard Glanville said to the Mail, that it would have been “impossible to settle the matter without taking legal action.” He added that it had “been a very drawn-out affair and we gave them every opportunity to pay the money back before applying to put into administration.”

This announcement comes after rumors that the label was struggling to make profits, when the boutique moved to smaller location in August 2011 and Allen, pregnant with her second child gave control of the company to her sister. So far, neither of the sisters have been willing to comment on the liquidation, however a spokesman for Allen said, "Lily is no longer involved in the shop and has not been since 2011."

Lucy in Disguise LLP was first founded by the sisters in 2010 and its ready to wear line was launched out the of duo vintage boutique store in London and online in 2011. In a previous interview with WWD, Allen said that the collection was inspired by the fictional character Lucy, who is “a time-travelling fashionista who is inviting you to explore her wardrobe.”