Betsey Johnson Declares Bankruptcy (Forbes)
“A spokesperson at Betsey Johnson has confirmed that the 34-year-old fashion line has filed for bankruptcy protection. The filing will likely result in the dismissal of 350 employees and the closure of most of the brand’s 63 stores.
Betsey Johnson filing for bankruptcy will result in 350 employees being laid off. It was said to have severe liquidity problems and up to 4.1 million in outstanding debt owed to vendors, manufacturers, and other service providers including jewelry, banks, and accountants. Steve Madden who owns the right to the company says that her line will still be sold in Bloomingdale’s, Nordstrom, and Saks fifth Avenue.
I hope she still continues to create cloths despite her financial problems. I feel bad for the employees that are going to be “dismissed”. Its not their fault that the company spent more money then they made. Then again this happens to companies everywhere. J.C Penny’s laid off a few hundred employees due too budget cuts and new business strategies.