The pregnant star opened Lucy In Disguise with half-sister Sarah Owen just 10 months ago and has already been forced to shut down their shop in Covent Garden, the Daily Mail reported.
No reason was given for the closure of the store, which hired out designer vintage clothing.
The sisters have, however, opened a temporary 'pop-up shop' near Carnaby Street.
“Everything is chaotic with Lucy In Disguise,” a source said. “Having a pop-up shop is a last-ditch attempt to save things.”
Allen and Owen are believed to have also signed a lease for another permanent store, although no date has been set for its opening.
A Lucy In Disguise spokesman said: “We cannot comment until the new store is open.”