How Iconic Designer Betsey Johnson Went From Outfitting The Stars To Bankruptcy

Iconic American designer Betsey Johnson filed for Chapter 11 bankruptcy yesterday, saying she would close most of her boutiques and focus on her more affordable Macy's line. 

Johnson got her start hanging out with Andy Warhol and editing a fashion magazine. Since starting her own fashion label, Johnson has outfitted celebrities including Rihanna, Katy Perry and Reese Witherspoon.

But Johnson's whimsical $400 dresses just weren't hitting a sweet spot with customers and siphoned cash from her company.

Betsey Johnson was born in Connecticut in 1942. As a child, she took many dance classes, which she says inspired her love of wild fashions.

information via fashionmodeldirectory.com.

Betsey moved to New York after graduation and became a guest editor at Mademoiselle. In her free time, she started sewing together designs.

information via fashionmodeldirectory.com.

In the 1960s, Johnson was part of a group of artists mentored by Andy Warhol. The bright colors he used continue to be reflected in her designs today.

information via Vogue.

In 1978, Betsey Johnson formed her own label and opened boutiques in New York and Los Angeles to rave reviews. The store count eventually expanded to 65.

information via betseyjohnson.com.

By 2003, Betsey began expanding her brand to include handbags and lingerie. She's since added jewelry, shoes, swimwear and perfume.

information via betseyjohnson.com.

But Johnson's stores were hit by the recession and by 2008 consumers couldn't afford her $395 dresses anymore. Despite these setbacks, the designer continued to outfit celebrities like Katy Perry, Rihanna and Reese Witherspoon.

information via wwd.com.

Shoe tycoon Steve Madden bailed out Betsey Johnson, paying her $48.8 million dollar loan in exchange for rights to her intellectual property.

information via wwd.com.

Johnson also began selling clothing, jewelry and accessories in a mid-priced line at Macy's, which was very popular.

information via wwd.com.

But her boutique's woes were eventually too much. Johnson filed for Chapter 11 bankruptcy and said she would close most of her boutiques. About 350 employees will lose their jobs.

information via wwd.com.

Johnson has said she is going to focus on her line for Macy's going forward, where designs range from $128 to $148. She said she loves the moderate price range because she can outfit the young people who love her clothing.

information via wwd.com.

Following bankruptcy, Johnson still plans to have 4 or 5 "flagship" stores in the U.S. She is also releasing a second fragrance this fall.

information via wwd.com.

In addition to her fashion endeavors, Johnson is planning to star in a reality television show. "Betsey + Lulu" will begin filming in July and is about the designer's relationship with her daughter.

You've seen Betsey Johnson's ups and downs...

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