Betsey Johnson LLC filed for bankruptcy today, which will result in closing its 63 free-standing stores and letting go of about 350 staffers.
Designer Betsey Johnson will stay on as the brand’s creative director and continue to sell her lower-priced label at Macy’s and other retailers. A liquidation firm will be appointed to help close Johnson’s free-standing boutiques in the upcoming weeks.
CFO Jonathan Friedman wrote in a release:
“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.”