Betsey Johnson LLC has filed for bankruptcy. The financial foreclosure will see most of the label’s 63 boutiques closing their doors in the coming weeks, putting some 350 employees out of work.
While every effort was made to address the company’s cash flow concerns, it seemed seeking protection under chapter 11 bankruptcy was the company’s only option. Betsey Johnson’s chief financial officer Jonathan Friedman explained bankruptcy was “likely be the best way to maximize the value of the company’s assets, for the benefit of its creditors.”
While the situation is dire, this isn’t the end of the Betsey Johnson story. Johnson herself will continue her post as creative director overseeing the label’s mid-priced Betsey Johnson line. This collection will continue to be sold in Macy’s and other department stores.
“I love the moderate price range,” the upbeat designer told Women’s Wear Daily. “It is in synch with all the girls who are buying my clothes.“
She’s pushing 70 but Betsey Johnson continues to be one of the brightest stars in the fashion industry. While her envelope pushing designs might not always hit the mark for me, I definitely admire her creative vision and hope she lands on her feet. Do you think Betsey Johnson will bounce back?
[Source: Fashionista]
[Image Source: The Heart Truth/Wikipedia Commons]
