THE Ultimo underwear firm set up by Michelle Mone has announced it is to cease trading in the UK.
The Tory peer, now known as Baroness Mone of Mayfair, established the lingerie brand in 1996.
Sri-Lankan based MAS holdings acquired a majority shareholding in parent company Ultimo Brands International Ltd in 2014, with Lady Mone resigning as a director of this company the following year.
Now the firm has announced that following an extensive review of the business, the operation in the UK will cease trading.
Staff at the Ultimo headquarters in East Kibride were informed, with a formal redundancy consultation now under way with the 11 employees there.
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's 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.
Its website will continue trading until April 15, with Ultimo products still available while stocks last.
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