Betsey Johnson's Bankruptcy and Comeback Explained

When Betsey Johnson declared bankruptcy last spring, die-hard fans mourned the shuttering of the brand that gave so many their first prom dress. But Johnson's comeback seemed to start as soon as the dust from her store closures had settled with the announcement of a new reality show and a lower priced dress line. A meaty profile in today's New York Times takes a closer look at Johnson's new projects--and sheds some light on why Johnson had to file for bankruptcy in the first place.
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When Betsey Johnson

Then there's that reality series, aptly titled The Betsey and Lulu Show, debuting in March on the Style Network which will undoubtedly help to introduce Johnson's brand to a new generation of consumers. The show follows the mother/daughter duo as Lulu tries to launch her own fashion label. (Johnson also apparently has a huge crush on a 30-year-old "scruffy" cameraman from the show named Ben.)

Truth be told, we're kind of in awe of 70-year-old Johnson and her boundless energy. “I’ll be so depressed when I can’t do [cartwheels] anymore,” she said. “At that point, you may as well just put me in a wheelchair.” Don't worry too much, Bets, we really don't see that happening anytime soon.

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Betsey Johnson Files for Bankruptcy

Betsey Johnson LLC, the licensee that operates Betsey Johnson’s 63 freestanding stores, women’s apparel and e-commerce, has filed for Chapter 11 bankruptcy, WWD is reporting. Most of the 63 stores will close within the next few week and 350 employees are expected to be let go. Betsey Johnson herself will stay on as creative director to design the brand's lower priced Betsey Johnson line, sold in Macy's and other mass retailers, as well as oversee accessories and other licenses. "I love the moderate price range," she told WWD. "It is in synch with all the girls who are buying my clothes." Jonathan Friedman, Betsey Johnson's CFO, issued the following statement:

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Betsey Johnson Isn't Going Anywhere: The Designer Still Plans to Show at New York Fashion Week, Star in Reality Show

Betsey Johnson's company announced yesterday that it would be filing for bankruptcy and closing its stores, putting a rumored 350 employees out of work. But Betsey is not going down without a fight: Her brand and aesthetic will live on. We can still expect to see Betsey cartwheeling down the runway at New York fashion week come September, WWD is reporting. The designer is staying on as creative director of the brand, and will continue designing sportswear, though, as mentioned yesterday, the emphasis will be on her more moderately priced Betsey Johnson line, which has sold much better than her runway collection. WWD reports that aobut 75% of the spring merch will be moderately-priced, and the rest "editorial- and designer-range pieces."

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First Look: Betsey Johnson's New Dress Collection

Betsey Johnson's main collection may be shuttered forever, but that hasn't stopped the most energetic 70-year-old on the planet from expanding her fashion legacy. After Steve Madden invested in the company, they decided to take the Betsey brand down a few price points and focus on what she arguably does best--dresses. Here's a first look at her new lower-priced dress line.