A spokesman for the business of the late designer L’Wren Scott has firmly rebutted numerous media reports that her company was financially troubled.
In a statement issued to WWD on Friday, the spokesman said, “The figures quoted in the media regarding the financial status of LS Fashion Limited are not only highly misleading and inaccurate but also extremely hurtful and disrespectful to the memory of L’Wren Scott.
This story first appeared in the March 24, 2014 issue of WWD. Subscribe Today.
“Ms. Scott was considering a restructure of her global business,” the statement added, in an apparent rebuttal of numerous media reports the designer was due to shutter her company. “The L’Wren Scott business consists of a wholesale business of ready-to-wear women’s wear, a bespoke Couture business for private clients, a licensing business, Ms. Scott’s globally recognized work as a fashion consultant and stylist and her collaborations such as her recent collection for Banana Republic.
“Her business overall was only seven years old and although some areas of the business had not yet reached their potential, other parts of her business were proving successful. As a private business, details of income and turnover are not publicly disclosed, however it can be said that the long-term prospects for the business were encouraging. Ms. Scott was very focused on doing what was right for her global business and for the support of her team.
“In terms of figures shown at Companies House in the U.K., the parent company of LS Fashion Limited based in America had made a standard loan investment to the U.K. subsidiary. LS Fashion Limited is fully able to meet the company’s liabilities and pay all suppliers and customers.”
The spokesman told WWD Friday, “The fact that L’Wren Scott would have been hounded by creditors or riddled with debt is preposterous.”
The 49-year-old Scott, who had struggled with depression in recent months, was found dead Monday in her downtown New York apartment. The New York medical examiner ruled the death a suicide.
The designer’s former in-house team also struck back at some of last week’s media reports. A statement issued by them Friday read, “We have lost a great friend and an inspiring leader. We are grieving privately and whilst we appreciate the incredible tributes that have been paid in the media by those who knew L’Wren, we strongly object to some of the media’s intrusion into issues that are not only untrue and misleading but also distract from remembering and celebrating her life — the life of a successful, talented, kind, generous and extraordinary woman. We ask that our privacy and that of L’Wren’s family and close friends be respected at this difficult time.”
While filings for Scott’s company at Companies House in London showed her firm lost 4.24 million euros, or $5.9 million at current exchange, in 2012, a source in London confirmed that figure applies only to the U.K. portion of her business. No revenue figure was filed by Scott’s company. The source said the minimum revenue threshold for filing a profit/loss account at Companies House is 6.5 million pounds, or $10.8 million, so Scott was clearly taking in less than that in the U.K. because she was not compelled to file one. The size of Scott’s total business could not be learned, however.
The firm is currently listed in good standing by the state of Delaware. In addition, its 2013 taxes were paid online by an undisclosed party March 12, according to a spokeswoman for the state’s Corporation Trust Co.
A spokesman for Scott’s company declined to comment on reports that the designer’s funeral will be held in Los Angeles.