Crazy, But True: Betsey Johnson Files For Chapter 11 Bankruptcy
Seeing news regarding one of my favorite designers since middle school filing for bankruptcy truly saddens me. Unfortunately, it seems as though Betsy Johnson has fallen on hard times.
According to Women’s Wear Daily via HuffPo, Betsey Johnson LLC is filing for Chapter 11 bankruptcy:
Betsey Johnson LLC is the designer’s licensing company, which oversees the freestanding Betsey Johnson boutiques, womenswear and e-commerce. The company has been in trouble for a while, with Steve Madden buying Betsey Johnson LLC’s outstanding debt in 2010 and taking control over the label, including the licensing agreements.
But the company’s cashflow problems remained. Now Betsey Johnson LLC will close nearly all of the designer’s stores and lay off an estimated 350 staffers, reports WWD.
However, this isn’t the complete end of Betsey Johnson. The designer, an eccentric icon of the New York fashion scene, will continue to oversee her sportswear (the moderately-priced goods found in department stores), the accessories (good ol’ Betseyville) and other licenses.
Who can resist the fun, creative designs of Betsey Johnson? I guess everything isn’t recession proof. =o(