As many of you may have already heard, this past Thursday news broke that Betsey Johnson LLC, the licensing company that owns the designers stores, has for bankruptcy protection in New York.
The chapter 11 filing essentially allows companies to reorganize when facing bankruptcy and will see most of Betsey Johnson's 63 stores close within the near future with the exception of some flagship stores and over 350 employees laid off.
Overall this is not surprising after defaulting on a $48 million loan and being bailed out by parent company Steven Madden Ltd. This will not be the end of the designer as she will still serve as creative director for the brand and focus mainly on the mid priced line sold at Macy’s which will also be shown at NYFW this coming September.
Now I wonder if this will be showed on her new upcoming reality show because that would definitely make for some interesting television.