Betsey Johnson’s infectious smile and larger-than-life personality could do nothing to evade the heavy battering of the tough economic conditions, as the company fails to prop up falling financial figures. Struggling to keep the cash flow running, Betsey Johnson LLC—the licensee operating the designer’s retail stores—filed for bankruptcy protection this Thursday. As a result, most of the brand’s 63 stores will be forced to shut down in the next few weeks, leaving four or five operating boutiques. The company, which has a 400-strong workforce, is also expected to trim down its employees.
Despite this development, Johnson and her over-the-top aesthetic will stay as the company’s creative director. She will focus on the moderately-priced line, which significantly appeals to the younger crowd. In a WWD article, the designer revealed that she loves the said price range as “it is in synch with all the girls” buying her clothes.
While this may be tough on Johnson and her team, we think it will take more than a bankruptcy to bring down her effervescent-and-cartwheeling personality. Although majority of the stores will shut down, Johnson’s pieces will still be available at Saks Fifth Avenue, Bloomingdales and Nordstrom.