This week, Emanuel Ungaro suggested Lindsay Lohan is sucking the soul out of the label he founded and retailers seem to agree.

It’s no secret that Estrella Archs and Lindsay Lohan’s Spring 2010 collection for Emanuel Ungaro didn’t exactly wow the fashion industry.

WWD: “An embarrassment”

Style.com: “A bad joke of a fashion show”

Elle UK: “Lindsay’s vision disappointed”

Fashion Week Daily: “Ungaro used to mean very much to Paris …Ungaro deserves better”

After industry critics ripped Lindsay Lohan’s debut as Artistic Adviser for Emanuel Ungaro to shreds, Neiman Marcus and Net-A-Porter have dropped the label for spring 2010, the only two major retailers selling the label outside of freestanding Ungaro stores. Barneys and Saks haven’t carried the line for several seasons, and also decided not to pick it up for spring.

Emanuel Ungaro himself has even labeled Lindsay Lohan’s debut at the house he founded a “disaster.” He told reporters at a film festival in Lisbon, “I am furious but I can’t do anything about it.” Ungaro has had no contact with the house since he left in 2005, and the label is now owned by an American investment company. The AFP reports: Ungaro said he regretted that the fashion house he started “is in the process of losing its soul. That happens to a lot of designers. We were the creators and patrons, responsible for the creation and destiny of our houses. But when we gave up our houses, we gave up our souls.”

Ungaro’s CEO Mounir Moufarrige brought Lindsay on to boost sales, and give the brand buzz with a younger clientele, but LiLo has had the opposite effect on the luxury brand. Rumors that Lohan didn’t get paid by Ungaro, and covered the cost of her travel expenses for Paris Fashion Week, have been going around for weeks. Now rumors are going around about her being let go all together from the brand after just one season. To be continued…