Founder of Karen Millen revealed to be bankrupt

London - Karen Millen, the founder of the eponymous womenswear label, has been officially declared bankrupted by the High Court.

Millen, who founded the global retailer over 35 years ago, failed to pay over 6 million pounds to HM Revenue and Customs in unpaid taxes and could lose her 3 million pound home in Kent. The former designer is said to have entered into a tax avoidance scheme known as 'Round the World' in 2001. However HMRC challenged the scheme back in 2010, after stating it was "carefully orchestrated" from the UK and could be taxed, reported the Times.

Millen states she has been unable to pay her tax bill back due to her legal battle with collapsed Icelandic bank Kaupthing, who prevented her from using her own name to start a new company. A High Court judge previously ruled that the use of her name would be too confusing and breached an agreement made back in 2004, when Millen and her former husband Kevin Stanford sold the majority of their shares in the brand to Baugur Group, with debt finance provided by Icelandic bank Kaupthing.

Photo credit: Martin49, via Flickr