Sources revealed to MailOnline, the clothing entrepreneur, née Adams, has closed down the business as she is 'too busy with her four children' and struggled to find a third party to take over running the shop.
While Victoria's label, where prices tip £2,500 for a dress, won Brand of the Year at the British Fashion Awards in 2014, Louise's brand has now closed as the Hidden Closet Facebook page urges customers to 'use vouchers and credit notes ASAP'.
Louise followed in her pop star-turned-designer sister's fashion footsteps when she launched the store in Hoddesdon, with items in the shop starting at just a few pounds and ranging up to around £60.
Hidden Closet opened in November 2016 and is the second clothing venture for twice-married Louise, a mother-of-four.
At the time, she told the Daily Mail: ‘Of course there’s a massive, massive difference (between her shop and her sister’s). We have budgets to spend on clothes. We obviously sell more affordable clothing.’
Despite three years in business, it is now coming to an end for Louise, as the insider told MailOnline: ' They are closing it down as her and friend that she opened it with are too busy with their kids - they tried out a couple of people to run it on their behalf but as I understand that didn’t work out'.
There are only two years between the fashionable siblings and they both raise a brood of four children each.
But the similarities don't stop there as it extends to their careers, with both women going onto make their mark on the fashion industry.
Victoria has four children and she launched her fashion label in 2008. In 2014 she won Brand of the Year at the British Fashion Awards.
Posh Spice owns a 6,000sq ft minimalist store, designed by renowned architect Farshid Moussavi, in Dover Street selling designer gowns costing up to £3,000.
While Victoria has courted the attention of headlines ever since she was catapulted to fame in the Spice Girls, Louise once addressed the comparisons to her sister.
But it may come as a surprise that the younger sister insisted that she got into show business before Posh Spice.
She explained herself: 'I appeared in commercials and had an acting agent until I was a teenager.'
'I was in the children's TV programme Dramarama and played a member of a gang. But I got sick of auditions and modelling in magazines and decided to quit. Victoria carried on and went to theatre school.
'If people think I'm just cashing in on my sister's success, I don't care because I know it was me that did it first.'