Ultimo goes bust as underwear firm founded by Michelle Mone stops trading in UK

The lingerie firm founded by bra tycoon Michelle Mone is to close after raking up heavy losses.

Ultimo's owners said they had decided wind up the UK business after an "extremely challenging" few years.

Ms Mone set up the business – whose models have included Penny Lancaster and Rachel Hunter – in 1996 selling "cleavage enhancing" bras with then husband Michael. He left the company in 2013 after they divorced.

She made millions before selling a majority stake to a Sri-Lankan firm called MAS Holdings in 2014.

A year later Tory Prime Minister David Cameron made her his business tsar and a Conservative peer.

At the same time Ms Mone, dubbed Baroness Bra, stepped down as a director of Ultimo.

Records show she still owns 200 shares in the business, which saw losses balloon from £1.8million to £3.9million in 2016.

Ultimo Brands, based in East Kilbride, Scotland, said the firm's closure will see 11 workers lose their jobs.

The firm added that all suppliers would be paid and customers' rights were not affected.

A 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 uncertainty surrounding the UK economy over the last 18 months."

Ms Mone, now Baroness Mone of Mayfair, grew up in the East End of Glasgow and left school at 15 to look after her disabled father.

She said: "I left school with a real fire in my belly, a determination and can-do attitude."

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.