Published Thursday, 14 June 2012
The Flying Without Wings hitmaker launched Shafin Developments Limited with his brother Finbarr in 2004, but the firm was hit hard by the global financial crash in 2008 and went into receivership earlier this year.
The singer has been working to rectify the situation, but has been forced to go bankrupt.
In a statement, he says: "Together with a team of financial and legal experts I have spent months exploring all possible alternatives to bankruptcy but to no avail.
"I have worked long and hard to try to reduce my debts, and I am devastated that it came to this conclusion.
"I now intend to focus on the remaining dates of the Westlife tour and my commitments to the band before looking to rebuild a future for my wife, my three children and myself."
Westlife will split when its farewell tour comes to an end later this year.