• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Steve Madden adds Betsey Johnson brand

11 Oct '10
3 min read

Steve Madden, a leading designer and marketer of fashion footwear and accessories, announced that it has entered into a Restructuring Agreement with Betsey Johnson LLC to effect an out-of-court restructuring of the outstanding debt of BJ LLC purchased by the Company in August 2010 for $27.6 million. Pursuant to the Restructuring Agreement, in consideration of the elimination of amounts owed under the outstanding debt, the Company acquired the trademarks and intellectual property of BJ LLC, including Betsey Johnson and other related brand names and a 10% equity interest in BJ LLC.

The Company also made a new secured term loan to BJ LLC in the principal amount of $3 million, which bears interest at the rate of 8% per annum (payable at maturity) and matures on December 31, 2015. In addition, Castanea Partners, who has partnered with Betsey Johnson and BJ LLC for the past three years, has agreed to support BJ LLC's business with a further equity investment in BJ LLC.

The Company and BJ LLC also entered into two new license agreements under which the Company has granted BJ LLC the exclusive license to operate Betsey Johnson retail stores in the United States, Canada and London, England and manufacture and sell specified women's apparel under the Betsey Johnson and Betsey Johnson Collection brand names.

The transaction is expected to be accretive to the Company's earnings, contributing approximately $0.10 in diluted EPS in 2011.

Other details of the transaction are included in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, "We are thrilled to add the Betsey Johnson brand to our growing portfolio of brands at Steve Madden. Betsey Johnson is an iconic brand with a rabid consumer following, and we believe it offers meaningful growth opportunity for our business. We are also pleased to have entered into a relationship with Betsey Johnson LLC in support of the continuation and growth of its apparel and retail businesses and look forward to working closely with Castanea in support of Betsey Johnson LLC going forward."

Steve Madden, Founder and Creative and Design Chief, added, "Betsey is my hero - one of the great American designers. I have always admired how everything she does is instantly recognizable - it looks, feels, radiates Betsey. We want to do whatever we can to continue her creative vision and make the Betsey Johnson brand bigger and better than ever."

Steve Madden Ltd

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search