Working in a closet your interruption rate would be cut down. It is far from an ideal environment, but it is better than being interrupted all of the time in a noisy cubicle environment.
Working in a "status office" has its own productivity drawbacks. For instance any decent developer would prefer to have a desk with lots of space rather than the fancy wood desk. Or another whiteboard instead of the status picture hanging on the wall.
Cheers,
Ben