Ian Defty and James Dowers from Kingston Smith & Partners have been appointed joint liquidators of Lucy in Disguise, a fashion business originally set up by the singer Lily Allen which has collapsed with debts of more than £800,000.

The business was incorporated in November 2009 and began trading the following year with Allen and her sister Sarah Owen as directors. Its launch was the subject of a three-part Channel 4 television documentary called From Riches To Rags in which the pair were mentored by fashion guru Mary Portas as they set up a shop and vintage hire business in central London.

Allen subsequently resigned in July 2011 when she announced her intention to focus on her young family, and was replaced as director by her mother. Annual accounts filed in February 2012 show that the business was insolvent by the period ended 30 November 2010.

Lucy in Disguise was placed into liquidation in June this year, following the presentation of a winding up petition by a supplier, Aurora Fashion. Aurora said it was owed £12,000, the amount outstanding on £100,000 bill for which payment had taken over a year. The deficiency disclosed to the liquidators is approximately £845,000.

James Dowers of Kingston Smith & Partners, joint liquidator, said: 'Many retailers are failing due to the current economic climate, but when a business goes into liquidation owing such a large amount of money, it always raises creditors' concerns. We will be working closely with the directors of the business and its creditors to ascertain the reasons behind such a large failure.'