Earlier this year, it was reported that after Betsey Johnson was failing to make payments on a $48.8 million loan, Steve Madden took over the loan, basically bailing Johnson out. Daily Front Row reported on Oct. 8 that Madden has recently bought out Johnson’s trademarks and officially owns the company.
Johnson will continue to head all design aspects of the company. Madden plans to increase marketing and strengthen the daytime dresses and (not surprisingly) shoe businesses- his goal is to make shoe sales 30% of the company’s total sales within the next year.
“Betsey is my partner,” Madden told WWD. “She has nothing to worry about and I will protect her… She is not on the hook for anything. I am honored to be partners with her. That is the truth.”