Luella closes as recession claims latest fashion victim

British designer Luella Bartley, whose signature prom frocks are worn by Lily Allen (above left), Amy Winehouse and Keira Knightley, has been forced out of business because of the recession, it was announced today.

Bartley's backers, the Singapore-based retail group Club 21, announced that it was pulling the plug on the former fashion journalist's 10-year-old label 'Luella', after the collapse of one of her main clothing producers in Italy, which meant orders for Bartley's spring/summer 2010 collection could not be met.

The announcement comes less than two months after Bartley won acclaim for that collection at her London Fashion Week show - attended by American Vogue editor Anna Wintour - and marks the demise of one of Britain's top fashion labels.

Bartley, 36, a Central St Martin's fashion graduate who went on to write for the London Evening Standard, Dazed and Confused and British Vogue, decided to launch her own label in 1999. Her debut show at London Fashion Week, 'Daddy, Who Are the Clash?' was, according to the Daily Telegraph's fashion editor Hilary Alexander, "one of the hottest tickets in town".

Between 2001 and 2007 Bartley defected to New York fashion week, but returned to show her designs in London two years ago. In 2008 she was named Designer of the Year by the British Fashion Council.

But it was her handbag called the 'Gisele' - as modelled by the Brazilian supermodel Gisele Bundchen at Luella's New York fashion week show in 2002 - that rocketed Bartley to international fashion stardom.

Bartley was subsequently signed up to design a range of bags for the then-ailing British fashion brand Mulberry. When the 'Luella for Mulberry' range was seen on the arms of every supermodel including Gisele, Bartley's bags played a key role in boosting Mulberry's fortunes.

Today Bartley described the situation as "very disappointing" but seemed to offer some hope that the label may have a future.

In a statement she said: "It is upsetting not to be able to protect jobs in this difficult economic climate. I love the Luella character and hope that after we have survived this challenging time the Luella girl can have an exciting future ahead of her, whichever incarnation she takes on next. We have a number of options open to us, and are considering these over the coming months." ·