End of the lingerie line as Ultimo closes

SHE built it from scratch and turned it into a £50million business.

But 20 years after Scots tycoon Michelle Mone started underwear firm Ultimo from her Glasgow home, its new bosses have confirmed the company is to cease trading in the UK.

Announcing the decision yesterday, Sri Lankan-based MAS holdings, which took over the business in 2014, blamed the UK’s failing economy and increasing competition for the wind-down.

It follows a decline in sales for the firm, which hit worldwide fame after the Tory peer, now known as Baroness Mone of Mayfair, claimed it made the bra worn by Julia Roberts in hit move Erin Brockovich.

Since being established in 1996, Ultimo has been fronted by models Penny Lancaster, Rachel Hunter and Luisana Lopilato, the wife of crooner Michael Bublé.

Staff at the Ultimo headquarters in East Kilbride, Lanarkshire, have been 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.

In a statement about the closure, Lady Mone took a parting shot at the company, which she left four years ago. She Tweeted: ‘It’s sad to see the Ultimo brand that I created 21 years ago and turned into a global success is closing down.

‘I sold Ultimo four years ago and left that day. I know exactly what went wrong.’

In a separate Tweet she added: ‘I am immensely proud of what we achieved.’

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. 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 brand over the years’.