‘After her last album was a massive flop, she was banking on Scott turning things around. He made her a lot of money but she's spending like crazy and everyone wants her to slow down.’
A representative for the star told MailOnline: 'Lily has parted company with her managers, a decision that was both mutual and amicable.'
Sheezus reached No.1 when it was released, but has only shifted about 100,000 copies - compared to It's Not Me, It's You, which was certified over three times platinum with over 1million sales in the UK alone.
The news comes just days after Lily hosted an X-rated Funlord set at Bestival on the Isle of Wight over the weekend.
She was seen dancing up a storm, flashing her underwear as well as drinking from a bottle of beer.
Meanwhile, it was recently reported that Lily's four-year marriage to builder Sam - who's father to their two daughters, Ethel, three, and one-year-old Marnie - was on the rocks.
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