Rumours that L'Wren Scott's business was in millions of pounds worth of debt surfaced after the news that she had committed suicide earlier this week.
Sources reported that after spending a week on her own at boyfriend Mick Jagger's holiday home on Mustique, the fashion designer returned to New York and allegedly confided in friends that her couture brand was no longer viable.
LS Fashion Ltd was reportedly running at a loss of £3.5m, but the company has released a statement denying the 'hurtful' rumours.
"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.
"Ms. Scott was considering a re-structure of her global business. 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 UK. The parent company of LS Fashion Limited based in America had made a standard loan investment to the UK subsidiary. LS Fashion Limited is fully able to meet the company’s liabilities and pay all suppliers and customers.
Celebrities wearing L'Wren's designs
"The L’Wren Scott team today said:
"'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.'"
L'Wren, 49, was found on Monday by her assistant inside the Eighth Floor of her Manhattan apartment.