Lingerie firm Ultimo confirms it is to stop trading in UK

The Tory peer, now known as Baroness Mone of Mayfair, established the lingerie brand - whose models have included Penny Lancaster and Rachel Hunter - in 1996.

The firm achieved international success after actress Julia Roberts reportedly wore an Ultimo bra in the hit film Erin Brockovich.

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.

Staff at the Ultimo headquarters in East Kibride were informed, with a formal redundancy consultation now underway 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’ 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.”