According to WWD, Betsey Johnson LLC, the lincensee that operates Betsey Johnson’s 63 freestanding stores, women’s apparel and e-commerce filed for chapter 11 bankruptcy. Most of the 63 stores will close within the next week and an estimate of 350 employees will be let go.
Betsey Johnson will still be creative director to design the brand’s lower priced Betsey Johnson line, sold in Macy’s and other mass retailers, as well as oversee accessories and other lincenses. “I love the moderate price range,” she told WWD. “It is in synch with all the girls who are buying my clothes.”
Jonathan Friedman, Betsey Johnson’s CFO, said the following:
The decision to seek protection under chapter 11 comes after months of rigorously pursuing alternative restructuring arrangements to address Betsey Johnson LLC’s cash flow problems. 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. Accordingly, our board made the determination that a Chapter 11 store closing process will likely be the best way to maximize the value of the company’s assets, for the benefit of its creditors.
Hopefully, her and her company will be able to get through these hurdles. [Fashionista]