Debt-ridden Duchess of York Fergie closing US business after 1.35M pounds loss

London, October 4 (ANI): Cash-strapped Duchess of York Sarah Ferguson is reportedly closing her New York-based lifestyle-and-promotions outfit Hartmoor LLC, after losing at least 1.35million pounds in three years.

Despite making a lot of efforts to promote herself, the debt-ridden Royal failed to land any major endorsement deals, and then fell out with her majority business partner, swanky US multi-millionaire investment banker Todd Morley.

Investing hundreds of thousands of pounds, the duo launched Hartmoor in a blaze of publicity in 2006.

They attended several US functions together, and pumped in more money so as to encourage others to invest.

However, Fergie, as Sarah is popularly known, is now said to be paying back creditors after taking out a loan of about 667,000 pounds.

"Sarah is in a huge money mess. It's a huge setback and she is very upset," the News of the World quoted a source close to Fergie as saying.

According to her friends, Fergie has offset the loan by using her assets as collateral.

She is said to have no home of her own.

However, she has a Trust Fund, intellectual property such as Budgie the Little Helicopter, antique art and furniture that could be used as surety.

Morley, on the other hand, has covered all his losses out of his own pocket.

Both of them also have to pay thousands of dollars of unpaid US tax bills.

They reported refused to file for bankruptcy because they feared that it would cause them "embarrassment", and instead vowed to settle their huge debts. (ANI)