Founded in 1997, it is believed the designer’s announcement comes following a dispute with the label’s owner, Factory X.
According to a statement from Hill’s PR representative Factory X will continue to operate the 42 Alannah Hill stores nationwide but Hill will not design for, or have any further input into the brand of the same name.
The label, known its for colourful and quirky designs, is also stocked at department store David Jones.
In a statement to local media, Hill said she was ‘deeply saddened’ to leave the business she began 18 years ago.
“My heart, my soul, my every little thing has been poured into creating a brand for girls who love and share my vision of ornamental, sensational, and beautiful clothes,” Hill said.
“I won’t be taking a ‘well earned break’, nor will I be going on safari! My dream is to continue to create fashion that radiates joy and the power of transformation, not just in fashion but in life itself.”