Betsey Johnson LLC, the company owned by American fashion designer Betsey Johnson, has filed for bankruptcy protection under Chapter 11 in New York, owing to poor performance of its retail stores.
The development will see most of the 63 Betsey Johnson stores to close in the forthcoming weeks leaving more than 350 staff unemployed.
Jonathan Friedman, CFO at Betsey Johnson, said the company had been considering alternative restructuring arrangements for the past few months to resolve its cash flow problems, but it became quite evident that seeking bankruptcy protection remained the only option.
However, Betsey Johnson, 69, will continue to remain creative director and design the brand's low-priced sportswear and accessories that are sold in Macy's and other retail stores.
Fibre2fashion News Desk - India