Betsey Johnson Files For Bankruptcy
Esteemed fashion designer, known for her edgy and fierce designs, Betsey Johnson’s company Betsey Johnson LLC has just filed for bankruptcy. As far as the brand is concerned, this means the closing of 63 stores, a rumored layoff of 350 employees and a company auction on May 8. However, you can still expect to see Betsey cartwheel down the runways during New York Fashion Week as she still plans to have a presentation. In addition, she will remain Creative Director of the brand but attention will be focused more upon her moderately priced fashion line, which has sold more than her high-end line we are used to seeing during fashion week, available at Macy’s and other mass retailer stores.
Here’s what Betsey had to say about the bankruptcy and her brand during an interview with Woman’s Wear Daily:
“I feel so sad for my store people and all my pink girls. They live and die for me. But I need to be better. I really need to work well and be more efficient.”
“The competition — the H&Ms, Topshop, Century 21 and the knockoff ability is unbelievable,” she told WWD. “Within three days of something being on the Internet, they have seen it, they copy it and they price-beat it.”
According to Elle Magazine, who received a tip from an anonymous source, layoffs at the brand actually started 6-weeks ago and prospective investors who were interested in the line weren’t in agreement with Steve Madden’s vision for the brand. Steve Madden, who has owned the brands intellectual property rights since 2010, vision included which was to take it down-market at a lower price point.