Lily Allen's clothing company shuts down

A clothing company set up by British singer Lily Allen has gone into liquidation.

The pop star launched fashion firm Lucy In Disguise LLP with her sister Sarah Owen in 2010, but the company reportedly ceased trading earlier this year (13).

According to Britain's Mail on Sunday newspaper, bosses at clothing manufacturer Aurora Fashion were owed money by Lucy In Disguise, so they applied to the courts to have the company put into administration to settle the debt.

Richard Glanville, Aurora’s chief financial officer, states his company is still owed $18,000 from a $150,000 bill. He says, "We had to make numerous phone calls and send several letters to chase up payments. 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."

Allen announced in 2011 that she had handed over the running of the company to her sister.