Sad news has been reported this past week about the wonderful talented Betsey Johnson who is filing for bankruptcy. It has been said she is still going to oversee some of her designs, full article here:
Betsey Johnson LLC, the women’s fashion retailer formed in 1978, filed for bankruptcy protection.
The Chapter 11 filing today in U.S. Bankruptcy Court in Manhattan listed as much as $50 million (all figures U.S.) in assets and debt. The company’s largest unsecured creditor is Haskell Jewels LLC of New York, with a $450,105 claim.
Formed as B.J. Vines in 1978, the company sells rock-n-roll and hippie-themed clothing, footwear, handbags and a signature fragrance through 66 Betsey Johnson boutiques with five of them being in Canada, including one in Toronto at 102 Yorkville, according to the company’s website. Betsey Johnson products are also sold in Winners.
The company engaged Morpheus Capital + Advisors LLC in February to find new equity investors or sell the business and was unsuccessful, according to the court filing. Citing “severe liquidity constraints” and imminent default of a secured loans, the company decided to file for Chapter 11 protection, according to the filing, which will see most of its stores close.
Calls to the company’s main showroom in New York and to Susan Falk, the chief executive officer, weren’t returned after regular business hours.
In 2010, Steven Madden Ltd. a footwear designer and marketer, swapped $27.6 million of secured debt for ownership of Betsey Johnson’s trademarks and intellectual property. At the same time, Castanea Partners, the company’s majority owner, made a new capital investment.
Brian Knez, a managing partner at Castanea Partners, and Marion Schouten of the investor relations department didn’t immediately return calls for comment after regular business hours.
The unit that filed for bankruptcy isn’t a part of Steven Madden.
c/o: http://www.thestar.com/living/fashion/article/1169500–betsey-johnson-files-for-bankruptcy-protection
Keep in mind: Betsey Johnson will close the bulk of her 63 stores, but will remain creative
director of the brand and will continue to design for her sportswear and
accessories labels
This is sad news indeed, but Betsey will still be around in all of our hearts (and hopefully our closets!)
p.s. Yes I did name my blog after Betsey and yes I will be keeping the name 🙂
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