Betsey Johnson files for bankruptcy protection

The chapter 11 filing will see the majority of its 63 stores close with 350 employees set to lose their jobs.

Betsey Johnson has filed for bankruptcy.

The chapter 11 filing will see the majority of its 63 stores close with 350 employees set to lose their jobs.

In a statement, the company's chief financial officer, Jonathan Friedman said: '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.'

According to the court papers, sales at the company's retail stores have fallen by more than 20% since 2007 and profitability has declined by more than 50%.

'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,' said Friedman. 'Accordingly, our board made the determination that a Chapter 11 store-closing process will likely be the best way to maximise the value of the company's assets, for the benefit of its creditors.'

SEE BETSEY JOHNSON'S S/S'12 COLLECTION

Johnson will remain as creative director of the brand, with the label focusing on their lower-priced line. However, their September fashion week show will go ahead as planned.

The designer who turns 70 next August and still manages to do the splits on the runway after her show told WWD: '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.'

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