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Betsey Johnson LLC, retailer of quirky female fashions, filed Chapter 11 bankruptcy, Women’s Wear Daily reports.Betsey Johnson currently has 63 stores around the country. Up to 350 staffers could lose their jobs as the company consolidates.
The company will now set its boutiques on the back burner and focus on its mid-priced attire which is sold at Macy’s.
The shift shows the label’s transition from high-end fashion to department store fare.
So far there’s no word from Betsey herself.
Here’s what the company’s CFO told Women’s Wear Daily:
Betsey Johnson LLC’s chief financial officer Jonathan Friedman said in a release, “The decision to seek protection under chapter 11 comes after months of rigorously pursuing alternative restructuring arrangements to address Betsey Johnson LLC’s cash flow problems. After exhausting our resources and possibilities, it became apparent that neither a restructuring arrangement with a new equity investor nor a sale of the business enterprise as a going concern outside of bankruptcy was to be forthcoming. Accordingly, our board made the determination that a Chapter 11 store closing process will likely be the best way to maximise the value of the company’s assets, for the benefit of its creditors.
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