How Katie Price racked up £3.2m worth of debts after her perfume company failed – and now faces losing her £2m Mucky Mansion as she’s declared bankrupt a SECOND time

After nearly 30 years in the spotlight Katie Price has seen it all, with her rises and falls worthy of any TV drama.

At the age of just 18, she was rocketed to fame and became a household name as Jordan by posing for spicy photos for the tabloids.

Since then she has battled burglaries, assaults and drug abuse, all while navigating a very rocky love life that has seen her get married – and divorced – three times.

However, it is her legal woes that have come to the fore in recent years, with the mother-of-five ending up in court for driving offences and financial issues.

On Monday the 45-year-old was declared bankrupt for the second time in 10 years after racking up millions of pounds in debt.

But how did it come to this? MailOnline has taken a look back to see how one of Britain’s most recognisable characters ended up on the brink of financial ruin.

Price was still in her teens when she first entered the nation’s consciousness, skyrocketing to fame overnight with her very spicy glamour photos in the 1990s.

Much of the focus after this was on her body – she became famed for having multiple breast-enhancement surgeries which saw them balloon in size – and her personal life.

High profile romances with Australian singer Peter Andrew, cage fighter Alex Reid, part-time stripper and plasterer Kieran Hayler, and most recently personal trainer Kris Boyson, have meant she is rarely out of the newspapers.

But away from the gossip she has tried to build up a business empire, the success of which has waxed and waned over time.

At its zenith Price was worth a reported £45million, splashing out on fast cars and an opulent £2million 11-bedroom mansion.

Supplemented by TV work – she was a regular sight on Loose Women and appeared on the likes of I’m a Celebrity and Celebrity Big Brother – it would be easy to think the good times would last forever.

She earned good money from fly-on-wall documentaries about her family, while lucrative book publishing deals also saw her earn hundreds of thousands of pounds.

Away from the media she launched a range of nutritional supplements, including meal replacement shakes, as well as perfume and a clothing range called ‘KP Equestrian’.

However, the opportunities dried up and her extravagant spending has caught up with her in recent years.

It was also compounded by her well known love of cosmetic surgery – since having her first breast-enhancement surgery at the age of 20, she has had 16 more boobjobs.

Last year she underwent the knife in a bid to get the ‘largest boobs in Britain’, and it is estimated she has spent £84,000 changing the size of her breasts alone.

It is thought that in total Price has spent more than £130,000 on body modification, with Botox and filler injections, as well as liposuction, inflating costs further.

In 2019 she declared bankruptcy with debts of £3.2million after the failure of her company, Jordan Trading Ltd.

Price had set up the firm to oversee her perfume and cosmetics line in 2003, but put in an application to wind up the company as she tried to sort out her finances.

Her clothing line ‘House of KP’ went quiet and she also stepped back from her other clothing brand ‘KP Boutique’ the same year, after profits of just £13. 

The court approved the bankruptcy application with the mother-of-five agreeing to pay back £12,000 a month to creditors of the firm as part of a voluntary arrangement.

Years earlier, in a bid to avoid losing her home, Price had taken out a second mortgage on the property, leaving her facing monthly payments of £12,300.

During a court hearing in October 2020 she apologised, saying she hadn’t ‘been able to deal with these issues or in the right mental state to understand everything that has been going on’. 

It would not be the end of her financial woes.

In June 2022 the former model was ordered to attend the Royal Court of Justice to explain to a judge why she had failed to repay millions owed to creditors.

However, she failed to appear – indeed she has not turned up six previous insolvency hearings with Price submitting an excuse not to appear each time. 

Despite being bankrupt Price seems to have lived an extravagant lifestyle – she has posted photos showing exotic holidays in Las Vegas and Thailand.

In February a court in London heard that the TV personality had agreed to make 36 monthly payments of £12,500 as well as a lump sum, but this had not happened.

The trustees went to court to request an income payments order, meaning money would go from any salary towards paying Katie’s outstanding debt.

Four companies were listed, including adult subscription website OnlyFans and celebrity photography agency Backgrid.

At the end of the hearing, Insolvency and Companies Court Judge Catherine Burton declared the four companies are ‘obligated to deduct 40 per cent of the income due to be paid to Ms Price’ each month for the next 36 months.

She added that the 40 per cent portion would be paid to a bank account chosen by the trustees.

The court was told that Fenix International Ltd, the parent company of OnlyFans was not disputing the order against Katie.

On Monday Price was declared bankrupt for the second time, after failing to pay £750,000 in tax to His Majesties Revenue & Customs (HMRC).

Unless the taxman can recover the money through other ways, Price could face losing her home, which has been dubbed ‘Mucky Mansion’ after it fell into a state of disrepair.

Price currently earns money through her OnlyFans page, selling her old clothes on Depop, club appearances and makeup masterclasses. It is not known how much she earns from these ventures.

At the High Court on Monday an official from HMRC claiming she had failed to pay any money owed or responded to any correspondence since the demand was made for the unpaid tax last year.

Judge Sebastian Prentis sitting at the High Court Rolls Building said Price had been served with a petition on November 27, 2023, with a demand for £761,994.05.

The huge amount is made up of unpaid tax from self-assessment on her earnings from 2020 – 2022 as well as penalties and surcharges.

The court was told she owed £142,405 in tax for 2020-2021 and £196,735 for 2021-2022.

The judge said she also owed £140,000 in unpaid VAT and added: ‘As with the unpaid tax no payment has been made.’

Price was served with papers in October by HMRC informing her of the debt owed – and she has failed to respond to the demand.

The judge said: ‘There is a substantial debt due from Miss Price due to HMRC and therefore I will make a bankruptcy order.’

The former glamour model had been speaking to the Mail’s comedy podcast Straight to the Comments! when the news about her latest bankruptcy broke. 

When told there was a new story about her, Katie gasped in shock and said: ‘Has it? Oh get lost! Are you actually serious, while I’m sat here? What have I done now?’

After hearing that she had been declared bankrupt a second time, she said she had been signed off because of ‘serious stuff’ in her life.

She said: ‘I know I had court last week or the week before. Because of what’s going on in my life, I’ve actually been signed off because I’m dealing with serious stuff.’

Katie went on to claim that she ‘doesn’t get away’ with not paying, insisting that she is making payments.

She said: ‘There’s all different kinds of bankruptcy, I think they just use the word bankruptcy. No one actually knows the ins and outs of everything.

‘And trust me I don’t get away with stuff either. Like you can’t – tax you can’t ever run away from, you have to pay. Don’t think I sit here and don’t pay stuff because I do.’