Vertu was known for its high-end, jewel-encrusted handsets, but recently faced financial difficulties.
The company's liquidation will result in the loss of nearly 200 jobs.
One technology analyst said Vertu would have faced competition from companies offering to customise other smartphones with precious materials.
Vertu phones carry hefty price tags - its Signature range starts at £11,100, and one model featuring 18-carat red gold costs £39,100.
When contacted by the BBC, an external spokesman for the firm said: "Well it's gone into liquidation and I'm not being paid by them any more."
In March, the company was sold by its former Chinese owner to Hakan Uzan, a Turkish exile in Paris.
The Daily Telegraph reports that he had planned to pay £1.9m to bring the company out of administration, but it had an accounting deficit of £128m.
Mr Uzan will retain the Vertu brand, technology and licenses.
"It is very unusual, they hand make the phone at incredibly low volumes and they were incredibly high-priced," said Ian Fogg, an analyst at IHS Technology.
He pointed out that some of Vertu's recent phones had used synthetic sapphire for its screens - something that Apple had considered for its iPhones but later abandoned because of production issues.
"It is a difficult material to work with," Mr Fogg told the BBC. "One practical benefit is that the smartphone screen is made incredibly difficult to break."
He also pointed out that other businesses that offered to customise consumer smartphones with precious stones or metals offered an alternative.
That meant that wealthy customers could choose the handset they wanted but add the desired "bling" later.
Vertu was founded by Nokia in 1998, but it was sold in 2012, and the following year Vertu switched from using Nokia's Symbian operating system on its devices to Google's Android.

His side are second in Group F, two points behind leaders England, and the visiting boss says they are only focused on a victory.
"We expect an aggressive opponent and we have to be the same," Katanec said ahead of Sunday's World Cup qualifier.
"We must concentrate on the second ball."
Slovenia are unbeaten in the last seven internationals since a 1-0 loss to Turkey in a friendly last May, while the Scots lie second bottom of Group F after gathering only four points from four games.
But Katanec insists he will not be fooled into thinking the contrasting fortunes will automatically give his side the edge in Sunday's game in Glasgow.
"Scotland are at home, so they will be the favourites, but we want the win because, in this group, one point is not enough," he said.
It is a match described by his opposite number, Gordon Strachan, as a must-win for Scotland, but Katanec thinks Sunday's hosts have been unlucky so far.
"They are not as bad as their results suggest and some of the goals they have conceded so far have been unlucky," he insisted.
Slovenia captain Bostjan Cesar echoed his coach's thoughts on the Scottish style.
"They are aggressive all over the pitch, but they have good players," said the 34-year-old Chievo defender.
"They tend to play long balls, so the second ball is going to be very important for us.
"We expect a tough match."
The expected attendance at Hampden is only 25,000 - less than half capacity.
Cesar experienced the Hampden roar with Slovenia in 2004 and thinks it will be a boost for his side if the home fans stay away in numbers.
"If the stadium is not full then that could be a plus for us, but we still have to do our thing on the pitch," he said.
Cesar is hopeful of exploiting a defence that have shipped an average of two goals per game.
"They are aggressive all over the pitch and have good players, but maybe their weakness is at the set-pieces because they leave too much room for the opponents to score at that time," he said.

James Brindley, 26, died on Aldridge High Street in the West Midlands on 23 June after an evening out with friends.
Aaron Kahrod, 20, from Walsall Road, Aldridge, and a 17-year-old boy appeared at Birmingham Magistrates' Court.
The pair were remanded in custody to appear at the city's crown court on Monday.
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A British-based company that made smartphones costing thousands of pounds will be liquidated after a plan to save it failed.
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