The lingerie firm had held the royal licence since 1960, but it was withdrawn after June Kenton wrote a memoir about her work, titled Storm in a D-Cup.
Kenton described her first bra-fitting session with a half-dressed Queen Elizabeth in the 1980s and recounted a personal anecdote told by the monarch's mother, the Queen Mother, British media reported.
"The royal household warrants committee has made a decision to cancel the royal warrant granted to Rigby & Peller and Mrs June Kenton", the brand said in a statement.
The palace have not commented on the warrant.
Kenton, from Bushey in Hertfordshire, bought Rigby & Peller with her husband in 1982 for £20,000, before selling a majority stake in 2011 for £8m, although she remains on the board.
Russell Tanguay, director of warrants at the Royal Warrant Holders Association (RWHA) who confirmed that Rigby & Peller lost its licence in the middle 2016, said that the RWHA does not "go into detail" about individual companies.
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"I've had the royal warrant for so long I never imagined that this would happen", Kenton added, according to The Telegraph.
There are now about 800 royal warrant holders, including individuals, small firms and global conglomerates.
Mrs Kenton, 82, described the book as a "kind and gentle" story about her life and said there was nothing to "be upset about". "I can't fight with Buckingham Palace and I wouldn't want to", she said. "I gave her posters of models in lingerie and swimwear for them to put up in their studies at Eton". It's just upsetting at the end of my life, but what can I do.
"I recognised the swimsuits in photos of her on that last fateful yachting trip with Dodi Fayed". "The book doesn't contain anything naughty", she continued.
Queen Elizabeth's official bra-fitter has lost her privileged job after she published her decades-old experience in a tell-all book.
However, an apology is simply not good enough for the queen and the luxury brand reportedly received a letter from the Lord Chamberlain asking the brand to remove the royal coat of arms from any promotional material and shop signs. While a palace spokesperson said that the reason was because of "significant decline in the trading relationship" between the Duke of Edinburgh and the iconic store, it was rumoured that the royal was angered by allegations made by owner Mohamed al Fayed who claimed that the monarchy has caused the 1997 Paris vehicle crash that killed Diana, Princess of Wales and his son, Dodi.