Lindsay Lohan

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A source close to Lindsay Lohan confirms L.L. is still residing in the main Betty Ford Center and has not yet transitioned into residential sober living, or "residential day treatment," in Rancho Mirage, Calif..

However, Linds was able to take a break and get some retail therapy at Forever 21 in Palm Desert this past Tuesday.

"She looked good. She had her hair down and was wearing sunglasses, a white T-shirt and jeans," says an employee who wished to remain unnamed.  "She seemed pleasant."

So could things really be turning around for Lohan? According to her business partner, that's a yes.

An October probation report paraphrased Lindsay as telling her probation officer that not only is she having major cash-flow problems, but her "clothing line is falling apart because she is not available to monitor the product."

However, Kristi Kaylor, president of Lindsay's fashion label and a longtime Lohan pal, tells E! News that 6126 is far from falling apart.

"It's doing fine," Kaylor says. "While she's getting healthy, I'm running it."

And we're told it's selling.

A rep for 6126 tells E! News that despite all of L.L.'s legal woes, they are getting great feedback about their new collection, with a Japanese buyer swooping up almost the entire spring line.

However, Kaylor concedes that everything will go smoother once Lindsay's out of rehab:

"It will be better when she is able to be hands-on with designing, because she is amazingly talented. But she's now spending time getting healthy. The orders are strong, and she's already working on fall handbags."

Kaylor declined to discuss how much exact time and attention Lohan is able to spend on the line while in her treatment program.  

Doesn't exactly sound like 6126 is in shambles as L.L. made it appear last month...then again Linds is hitting up Forever 21 instead of El Paseo, Palm Desert's version of Rodeo Drive.

The employee at Forever 21 says that Lindsay spent around $200 on a lot of clothing, including "a leopard sweater, cardigan sweaters, pajama shorts, shirts, leggings and some other stuff."

Does Betty Ford also offer budgeting lessons, then?

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