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The £2m valuation triggered an additional tax bill of £348,463 plus interest of £144,112, which fell due in 2009.
In March 2012, Vivienne Westwood Group reached agreement to end a long-standing UK franchise relationship with Manchester-based Hervia.
Westwood was one of the architects of the punk fashion phenomenon of the 1970s, saying "I was messianic about punk, seeing if one could put a spoke in the system in some way".
Westwood was the designer who often let her clothes speak for themselves, as independent designs and as her own statements of culture.
Mc Laren became manager of the punk band the Sex Pistols and subsequently the two garnered attention as the band wore Westwood's and Mc Laren's designs.
After taking up a job in a factory and studying at a teacher-training college, she became a primary school teacher.
During this period, she created her own jewellery, which she sold at a stall on Portobello Road.
The deal brought to a conclusion a legal wrangle which included Hervia issuing High Court proceedings for alleged breach of contract, after Westwood sought to end the franchise deal before the agreed term.
It was reported that a financial settlement was reached between the parties.