WSJ: Betsey Johnson Files Chapter 11
The Wall Street Journal reported fashion designer Betsey Johnson’s company filed for bankruptcy protection in New York, following poor performance in its chain of retail stores.
The Chapter 11 filing will bring about the closing of the chain’s 63 stores according to sources familiar with the matter said. Steven Madden Ltd., which owns the Betsey Johnson license, likely will keep four or five flagships in New York City and a few other cities, the person said.
The filing indicates the company said it started exploring strategic alternatives including a sale in January. The following month, it enlisted the help of Morpheus Capital and Advisors LLC to help it find new equity investors or sell the company, the filing said.