Sarah Ferguson finds herself embroiled in fresh financial controversy following a firm's recent collapse.
The former Duchess of York, 66, served as executive director of theatre investment firm Gate Ventures between 2017 and 2019.
During which time more than £500,000 in "unexplained" loans are said to have been issued.
The business entered administration in 2020 amid allegations of extravagant expenditure.
It is reported to have lost up to £19million.
A liquidator's report from May 2026, obtained by The Sun, reveals that investigators anticipate securing a "substantial recovery" for investors who lost money in the venture.
The findings represent a significant escalation in the legal threat facing the former royal.
Should Ms Ferguson lose the case, she could face the prospect of substantial legal costs.
Sarah Ferguson finds herself embroiled in fresh financial turmoil following a firm's collapse
| GETTYMs Ferguson has been approached by GB News for comment.
The former wife of Andrew Mountbatten-Windsor has grappled with financial difficulties since her 1996 divorce from the former Duke of York.
This latest legal threat compounds existing pressures on Ms Ferguson, who previously turned to Jeffrey Epstein for financial guidance.
In emails revealed in the files this year, the former royal made desperate appeals to the convicted sex offender for assistance with rent payments, writing: "I am at your service. Just marry me."
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The findings represent a significant escalation in the legal threat facing Sarah Ferguson
| GETTYMs Ferguson publicly admitted to accepting £15,000 from Epstein in 2011 to settle debts, which the ex-duchess branded a "gigantic error of judgement".
However, more documents released in the Epstein Files suggest the figure could be much higher, with Ms Ferguson allegedly requesting at least £20,000 to cover rent.
Ms Ferguson embarked on commercial deals to offset her expenses, becoming a global spokesperson for Weight Watchers.
She also launched business ventures, such as her wellness company, Hartmoor LLC, which collapsed in 2009 with $1million in debt. She was ultimately sued by accountants and lawyers for unpaid bills.
And Ms Ferguson's difficulties have mounted considerably over the past year.
In October 2025, King Charles ordered both her and ex-husband Mr Mountbatten-Windsor to vacate Royal Lodge, their longtime residence on the Windsor Estate.
Ms Ferguson also suffered a notable property loss when she sold her Belgravia apartment for £3.85million last year, having purchased it for £4.25million in 2022 — a deficit of £400,000.
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