The Australian arm of UK fashion retailer Karen Millen has entered administration and seven stores will close by the end of September across Victoria, New South Wales and South Australia.

Deloitte Australia was appointed administrator on Wednesday.

Designer and business owner Karen Millen founded the eponymous mid-to-upmarket women's fashion brand in 1981. It was launched in Australia in 2004, the same year Ms Millen sold the company to Icelandic company Mosaic Fashions.

Karen Millen had eight concession stores in Myer and David Jones stores across the country. Credit:Eddie Jim

Last month the London-based company was placed into administration amid a tough retail environment after efforts earlier in the year to sell the business.