Betsey Johnson files for bankruptcy, plans to close most stores

Betsey Johnson LLC, the entity that operates all of designer Betsey Johnson's retail stores, filed for Chapter 11 bankruptcy on Thursday (April 26) and announced that it will close most of the brand's boutiques in coming weeks.

Despite the upheaval, reports WWD, Johnson will stay on with the company as creative director and oversee the design of sportswear and accessories sold under the more moderately priced Betsey Johnson label at department stores like Macy's.

"I love the moderate price range," Johnson tells WWD. "It is in synch with all the girls who are buying my clothes."

Johnson's stores -- edgy pink paradises accented with leopard print and bustiers -- are expected to start shutting down in the next few weeks, leaving approximately 350 employees out of work.