Ethical fashion brand People Tree has put its UK business into liquidation after racking up more than £8.5m in debt.
The label, which counts actress Emma Watson and model Jo Wood as fans, shot to popularity due to its use of organic materials and campaigning for better treatment of garment workers.
However, following an extended deteriorating in trading, the retailer has warned creditors that it cannot meet its debt.
According to The Guardian, the brand owes almost £1.6m to three big creditors, including £816,893 owed to investors Shared Interest and Oikocredit, which have been secured by personal guarantees by former husband and wife founders James and Safia Minney.
Suppliers in India are owed more than £500,000 combined.
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People Tree have appointed Opus Restructuring & Insolvency as liquidators to dissolve the UK business.
The brand has made most of its employees redundant in the last few months, but documents relating to the liquidation show 14 employees are jointly owed £243,000.
Customers are also still waiting on refunds from June.
Founder and chief executive James Minney said: “I am extremely sad at this situation.
“Our customers and our wholesale stockists have been and always will be the absolute rock of support for People Tree.
“Our suppliers and creditors, with whom we have been in close discussions throughout this difficult time, have been supportive throughout our journey.”
The label’s European website is still trading, with a note to say shipping to the UK will be available soon.
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