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: