Betsy Johnson Shops Go Bankrupt

Iconic Manhattan designer Betsey Johnson's 63-store chain filed for bankruptcy yesterday.

The filing will likely result in the dismissal of 350 employees and the closure of most of the brand’s 63 stores. It listed “severe liquidity problems” and $4.1 million in outstanding unsecured obligations owed to vendors, manufacturers, service providers and other creditors including jewelers, watchmakers, banks and accountants. Steve Madden, who has owned the 34-year-old brand’s intellectual property rights since 2010, said in an email that the group will continue to support the company and ensure existing orders will be produced and ship on time.

Johnson's line will continue to be sold at Sak's and similar high-end retailers.