Late April 26th Betsey Johnson LLC announced bankruptcy. Although the exact reasons are mixed in controversy, out-standing debt and weak sales are likely the reason. The label will join a number of other fashion houses that have declared bankruptcy over the last couple of years including: Escada and Christian Lacroix.
Betsey Johnson has been a staple in the fashion industry since the early 70’s, inspiring playful clothing alternatives to women worldwide. Johnson began her career immediately after graduating from Syracuse University and was a perfect match for the various social and artistic movements during the late 60’s and 70’s.
Since 2010 the intellectual properties of the label have been owned by Steve Madden, who firmly believes in the brands future success. Madden has reassured that Betsey Johnson will remain on as creative director of the brands lower price line sold at Macy’s and Nordstrom. Furthermore the label has seen considerable success in the wholesale industry which promises future profitability.
All of the boutiques’ stock will be liquidated to pay off outstanding debts to creditors, and although statements regarding the Canadian retail locations have not been released, we are sure Canadian stores will undergo the same fate.