Betsy Johnson In Financial Trouble?
Betsey Johnson’s credit headache could prove to be Steve Madden’s designer brand opportunity.
In papers filed with the Securities and Exchange Commission late Thursday, Steven Madden Ltd. said it had taken over a $48.8 million loan to Johnson’s firm, Betsey Johnson LLC, that is currently in default. If Johnson can’t repay the loan by Aug. 20, 2012, Madden would end up owning the brand — and could even seize the personal assets of Johnson and her chief executive officer, Chantal Bacon.
The financial b
low to Johnson, 68, comes only 10 days before the flamboyant, cartwheel-turning designer is set to unveil her spring collection during New York Fashion Week.
Madden already holds a license for handbags, small leather goods, belts and umbrellas under the Betsey Johnson and Betseyville trademarks. The collateral for the loan includes the company’s intellectual property, so Madden could be in line for the labels it holds as licensee. Also included among the items securing the loan are “the borrower’s personal property, accounts, deposit accounts and cash, equipment, fixtures, general intangibles, goods [and] inventory.”
Madden spent about $27.6 million to buy out a syndicate of lenders who initiated the loan in August 2007. The final quarterly installment is due on Aug. 20, 2012. The loan was purchased through a new wholly owned subsidiary formed specifically for that purpose. posted by Catherine Cross
|Some of her designs are out there.|
|I hope that she can pay it|