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Management reportedly wanted LiLo for the ad campaign, but Cortazar will have none of it.
The London-based designer cites a steady drop in orders as the culprit that brought her down.
A spokesman for the label "cannot confirm if the July show will be going ahead."
The 86-year-old designer reportedly fell from scaffolding at his home in southern France last week.
They say Wu gave them permission to mention that he's gay.
His parents knew he was gay, but his extended family did not.