Betsey Johnson Files for Bankruptcy!

Oh Betsey, say it ain’t so! The fashion industry received some semi-startling news yesterday after Betsey Johnson’s chain filed for Chapter 11 bankruptcy. As a result, more than 350 employees are expected to lose their jobs, with a majority of the 63 Betsey Johnson stores closing next month. Betsey said in a statement, “I feel so sad for my store people and all my pink girls. They live and die for me. But I need to be better. I really need to work well and be more efficient.” The company was bailed out by Steve Madden in 2010 after it defaulted on a $48 million loan, so unfortunately it was a move foreseen by many. Betsey says she will continue to work hard and put most of her focus on her more affordable line sold at Macy’s. “I love the moderate price range,” Johnson told WWD. “It is in sync with all the girls who are buying my clothes.”