Betsey Johnson has filed for Chapter 11 bankruptcy protection. Johnson's company was given a temporary reprieve from bankruptcy in 2010 by Steve Madden, the shoe maker and convicted felon, after it defaulted on a nearly $50 million loan. Madden's company paid the debt, taking as collateral all of Betsey Johnson's intellectual property, and began the process of restructuring the company and pumping out more licensed goods — but the restructuring didn't really take, and retail sales are down by more than 20% since 2007. As a result of the bankruptcy filing, about 350 people will lose their jobs, and the majority of the chain's 63 stores will be shuttered. Johnson, who got her start as a costume designer on Andy Warhol's films (and who was once married to John Cale), says that the company will reorganize and emerge from bankruptcy, she will remain the creative director, and that she will have a runway show in September. [WWD, WSJ]
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