Our favorite crazy-haired, cartwheeling designer Betsey johnson has been experiencing some serious financial troubles as of late, after nearly defaulting on a $48.8 million loan. Just last month, her close friend and fellow designer, Steve Madden, took on the debt, with hopes to save Johnson’s company from the bankruptcy and near extinction that it faced. He even claimed that he’d buy the entire company if that’s what it would take to save the brand.

Well, Steve Madden is certainly a man of his word: he has now officially taken over Betsey Johnson and has full ownership of the company. As scary as that sounds, Madden assures us that Betsey will continue to have creative control over her eponymous label, and all design decisions will remain her call. Instead, his focus will be in developing her daytime clothing line and footwear. He tells WWD: “Betsey is my partner. She has nothing to worry about and I will protect her. . . . She is not on the hook for anything. I am honoured to be partners with her. That’s the truth.” Translation: the poofy skirts, silk, ruffles, and lace are here to stay! Let’s hope that everything works out for the best . . .

  • http://noirmuse.blogspot.com/ caribbelle

    I’m still slightly hesitant but I think this will be a good partnership. I’m just waiting to see how the brand further develops!

  • Glamarazzi

    I had no idea she was in such trouble. I do hope she is able to remain in creative control because I love her quirky aesthetic.

  • pixa

    i didnt know she was in financial distress either! guess this economy is hittin EVERYBODY in some way…

  • http://vivid-liveincolor.blogspot.com/ sun.kissed

    Wow. This is sure to be interesting.

  • Bronze

    Wow…….quirky genius meets mediocre cheap.

  • binks

    whoa, I didn’t even know Betsey was having trouble, I love her creativity and some of her clothes but I guess it goes to show you all that glitter isn’t gold. I hope the partnership works out and betsy churns out the creativity and genius she has been doing from the start.

  • Shanella

    I would love to help her out…she just needs to lower her prices….

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