Lily Allen's fashion firm has reportedly gone bust.

The directors of the loss-making Irish arm of fashion retailer Karen Millen must produce a viable business plan to ensure continued support for the business from its parent firm.

The owner of fashion chains including Oasis, Coast and Warehouse today said it was accelerating its growth plans after a successful half-year performance.

The “vast majority” of the 2,300 jobs at UK high street fashion retailer Principles are expected to go, sources said today.