High-end fashion label Nicole Farhi went into administration on Wednesday morning.
The brand, founded by the north London-based Jewish fashion designer in 1982, has run out of money, putting 120 staff members at risk. The brand has five stores and 10 concessions.
Nicole Farhi, bought by Kelso Place Asset Management last year, made a £5.6 million loss on a turnover of £21.7 million in 2009-2010.
Ms Farhi could now try regain control of the brand, according to a report on the Daily Telegraph.
Nice-born Ms Farhi, 66, co-founded the label with French Connection founder Stephen Marks. The couple, that have separated, have one daughter together.
The designer and sculptor, descended from Turkish Jews, has been formally known as Lady Hare since she married playwright Sir David Hare in 1992.
She caused a media storm last year after claiming that celebrities are paid thousands of pounds to appear in the front rows of catwalks.
