Michelle Mone has said she is ‘very sad’ that the Ultimo underwear firm she set up 21 years ago has announced it is to cease trading in the UK.

The Tory peer, now known as Baroness Mone of Mayfair, established the lingerie brand - whose models have included Penny Lancaster and Rachel Hunter - in 1996.

The firm achieved international success after actress Julia Roberts reportedly wore an Ultimo bra in the hit film Erin Brockovich.

Michelle lives in the Isle of Man with businessman Douglas Barrowman

Sri-Lankan based MAS holdings acquired a majority shareholding in parent company Ultimo Brands International in 2014, with Lady Mone resigning as a director the following year.

Now the firm has announced that following an extensive review of the business, the operation in the UK will cease trading. Staff at the Ultimo headquarters in East Kibride were informed, with a formal redundancy consultation under way with the 11 employees there.

Lady Mone said she was ‘immensely proud’ of what the firm achieved.

She tweeted: ‘It’s very sad to see that Ultimo, the brand I created 21 years ago is closing down. I turned Ultimo in to a global success story and I am immensely proud of what we achieved. Please note that I sold Ultimo and left the company four years ago. I may comment further shortly, when the time is right.’