The brand launched in 1999 but was sold in 2014
Staff at Ultimo headquarters in East Kilbride, Scotland, retail partners, suppliers and other key stakeholders were informed of the decision today, and all 11 staff have now begun a formal redundancy consultation period.
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A spokesperson for the company 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.”
While Ultimo UK operations will be wound up at the end of June, the company confirmed that Ultimo will honour all financial commitments with suppliers and partners, and the rights of consumers will also be unaffected.
Ms Mone founded Ultimo, along with her then-husband Michael Mone, in 1999.
She sold most of her stake in Ultimo to MAS Sri Lanka in 2014, and a year later resigned from the group's board.