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Ms Millen reportedly also had a holiday home in Majorca and an apartment in London although it is unclear whether she still owes those properties.

Since selling her stake in the company in 2004 the designer has set up two charities, Hope HIV and Teens Unite, which helps young people suffering from life-limiting diseases.

She wanted to use the trade marks 'Karen Millen', and 'Karen' for a new homewares and lifestyle business, focused on the US and China.

But the High Court ruled that it would be confusing for the original brand.

Fashion designer Karen Millen has said she is 'deeply devastated' as she faces losing her luxury mansion after she was declared bankrupt over unpaid tax.

Miss Millen, who opened her first shop almost 35 years ago, failed to pay £6million to HM Revenue and Customs over her involvement in a tax avoidance scheme.

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