Skip Nav
Fashion Week
34 Models You'll Be Seeing All Over the Runway This Fashion Week
Jenny Packham
Kate Middleton's Favorite Dress Designer Created the Most Romantic Bridal Line We've Ever Seen
Celebrity Style
Your Favorite Models and It Girls Wore the Sexiest Dresses to the amfAR Gala

Betsey Johnson Goes Bankrupt

Betsey Johnson Files For Chapter 11 Bankruptcy

>> The company that owns Betsey Johnson's boutiques is bankrupt, and as a result most of the designer's freestanding stores will close between May and July.

In a statement, the company said that it's spent months "rigorously pursuing alternative restructuring arrangements to address Betsey Johnson LLC's cash flow problems," to no avail. "After exhausting our resources and possibilities, it became apparent that neither a restructuring arrangement with a new equity investor nor a sale of the business enterprise as a going concern outside of bankruptcy was to be forthcoming."

Betsey Johnson LLC operates 63 of the designer's eponymous boutiques in the United States, Canada, and England. An executive at the company told WWD that some 350 people will be out of work when the stores close, but executives at Steve Madden — which saved Betsey Johnson from collapse in 2010 when it bought Johnson's $48.8 million debt — wouldn't confirm how many people would be affected.

Johnson herself won't lose her job. She's staying with the company as creative director and will focus on the lower-priced Betsey Johnson label sold in Macy's and other department stores. "I love the moderate price range," Johnson said. "It is in sync with all the girls who are buying my clothes." Mr. Madden said that the closure wouldn't interrupt wholesale deliveries to stores that sell Betsey Johnson and that there would be no impact on ecommerce availability.

Johnson executives are arranging an auction to determine which company will handle Betsey Johnson LLC's liquidation on May 8.

Photo: Betsey Johnson walks the runway with her daughter Lulu Johnson and granddaughter Layla Johnson at her Fall 2012 runway show.

Image Source: Getty
Around The Web
Over-the-Knee Boot Trend
Kate Upton Street Style | October 2015
Steve Madden Still Supports Iggy Azalea After She Bashed Him on Twitter
2015 CFDA Award Winners
Designer Activewear
Steve Madden Flat Sandal Review
Dancing With the Stars Season 19 Cast

POPSUGAR, the #1 independent media and technology company for women. Where more than 75 million women go for original, inspirational content that feeds their passions and interests.

Join The Conversation
Latest Fashion
X