It is truly a sad day for fashion. Betsey Johnson LLC filed for Chapter 11 bankruptcy protection on Thursday, because I guess the market for neon dresses with tulle skirts just ain’t what it used to be.
There are more than 65 Betsey Johnson retail stores in the world. The company also sells to department stores, but not regularly enough, it would seem, as retail sales have fallen more than 20 percent since 2007, and profitability more than halved in that time.
Before resorting to bankruptcy, the company reached out to 22 prospective buyers through Morpheus Capital Advisors LLC in February, but came up with nothing in the end.
"The economic recession had a devastating impact on higher-end fashion apparel brands, including Betsey Johnson Fashions," the company said in the filing.
Read more at Thomson Reuters.