Gertrude Lawrence - Financial Difficulties

Financial Difficulties

Throughout her adult life, except during World War II, Lawrence spent far more than she earned. Philip Astley had persuaded her to place £1,000 in a trust fund for her daughter, but aside from that she had no savings of her own. During her engagement to Bert Taylor he managed her finances and encouraged her to invest in the productions in which she starred, but although she earned a considerable amount of money from Private Lives, she still was deeply in debt, at one point owing fashion entrepreneur Hattie Carnegie more than $10,000. She opened accounts with dozens of shop owners but assumed she had unlimited credit and paid little attention to the invoices they sent. Finally two London laundry owners, whose bills totalled just under £50, filed a writ demanding she declare bankruptcy if she was unable to settle her accounts, and Lawrence's financial affairs came under the scrutiny of the Official Receiver. On February 26, 1935, the Daily Mirror reported her assets were valued at £1,879 but her liabilities were nearly £35,000, with an additional £10,000 owed to the Inland Revenue on her earnings in the United States.

It was later discovered Lawrence had never paid American taxes either. Her flat, cars, clothing, and jewellery were seized by the court, and Lawrence, her maid and her dog were forced to move into a flat owned by her agent at the time. On November 8, 1935, accused of "gross extravagance," she was ordered to pay £50 per week to pay off her debts. (Holtzmann worked out an agreement whereby $150 would be deducted from her salary each week she worked in the States until her American tax debt was settled). Refusing to lower her standard of living, she decided to take film work during the day, appear on stage at night, and perform in late-night cabarets in order to support her spending habits and, much to the distress of her agent, she purchased a country house and farm in Buckinghamshire, then left it vacant while she remained in the US for a lengthy stay. When her agent questioned the wisdom of such a move, she reportedly asked him to investigate the cost of a swimming pool installation on the property.