Lily Allen's fashion firm has gone bust.

The 'Smile' hitmaker quit her music career in 2010 to focus on her clothing company Lucy In Disguise LLP, which she set up with her older sister Sarah Owen.

However, the Mail on Sunday newspaper is now reporting the company has been forced into liquidation because of its massive debt to a leading manufacturer.

Aurora Fashions - whose brands include Coast, Oasis and Warehouse - was given a compulsory winding up order against Lucy In Disguise in the High Court earlier this year, with Aurora's chief financial officer, Richard Glanville, alleging they are still owed £12,000.

Richard told the Mail on Sunday: ''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.

''I don't think Lucy In Disguise has been particularly successful because they have not been able to pay their bills on time. The remainder is quite a small sum, but we have been forced to take this course because we can't get hold of anyone to settle the debt.''

Lily and Sarah had also launched a second business, Lucy In Disguise Collection Ltd, which was expected to sell clothes they designed themselves, but it was dissolved last month.

The sisters' shop in Soho, London, is still trading under the same name, but has new ownership which doesn't include the pop star.

A spokesperson said: ''Lily is no longer involved in the shop and has not been since 2011.''