L'Wren Scott was £3.5 million in debt when she died.
The fashion designer was found in her New York apartment this morning (17.03.14) having apparently taking her own life, leaving her friends, family and partner - The Rolling Stones singer Sir Mick Jagger - devastated.
According to accounts for her business, LS Fashion LTD, which were filed in the UK in October 2013, the company was in trouble, with a deficit of £3,546,000 and the designer owing creditors £4,593,000.
Friends have said the former model - known for her headstrong ways - had always refused financial help from her multi-millionaire partner of 13 years.
Speaking about L'Wren's fashion label, which she started in 2006, a source told MailOnline.co.uk: ''L'Wren was in a lot of financial trouble. She was unable to pay her staff and her suppliers and it had been going on for a very long period of time.
''She wanted so badly for things to be a success. Whereas she got her outfits on a number of high profile people, the clothes were not a commercial hit and didn't fly off the shelves. It was a huge burden on her and she didn't want to fail.
''Everyone was very much left wondering why she didn't ask Mick for help. But she didn't. Things were left a long time and she spent the past few months struggling to pay the vast amount of her outgoings. It was a tragic situation and she kept it from everyone.
''Her staff expected the company to go under and her fabric suppliers and tailors were close to ending their working relationship. The bills just weren't getting paid.''
A spokesperson for Mick - who is currently on tour in Australia said he is ''completely shocked and devastated'' by his partner's death.
L'Wren, who is a former model and stylist, had cancelled a show at London Fashion Week in January, saying at the time fabrics arrived too late for samples to be sewn for the event. It is now thought the real reason was her financial difficulties.