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Betsey Johnson Goes Bankrupt

Betsey Johnson, funky luxury designer, widely known for her use of bright, bold colors resembling her eclectic personality, just filed for Chapter 11 bankruptcy. According to an official statement of Jonathan Friedman, Betsey Johnson’s CFO, the decision comes after months of struggle with cash flow among her 63 stores:

“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,” Friedman reported.

The majority of the 63 stores will be shutting down over the next months, putting over 350 employees out of work. While this is undeniably a huge blow to Betsey Johnson and her brand, don’t fret: Betsey Johnson will still remain creative director for her lower-priced line sold in Macy’s and department stores.

Betsey Johnson is one designer who always surprises and dazzles the fashion world, and at 70-years old, we believe she still has a few tricks up her sleeve. Her show isn’t over yet.

Angela Di Laurentis

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