Fashion juggernaut Betsey Johnson is known for performing somersaults during her extravagant runway shows. But, here’s one piece of news she won’t be flipping over: Betsey Johnson LLC has filed for Chapter 11 bankruptcy.

“After rigorously pursuing alternative restructuring arrangements to address Betsey Johnson LLC’s cash flow problems,” the 34-year-old company wrote in an official statement, “[and] exhausting our resources and possibilities, it became apparent that neither a restructuring arrangement with a new equity investor nor a sale of the business enterprise as a going concern outside of bankruptcy was to be forthcoming.”

As a result of an estimated $4.1 million debt, it is estimated that 350 employees will lose their jobs when 63 Betsey Johnson stores close between May and July. Despite this clear turmoil, Betsey will continue to design sportswear, as well as focusing on the lower-priced Betsey Johnson currently available at Macy’s. “I love the moderate price range,” Betsey said. “It is in sync with all the girls who are buying my clothes.”

Steve Madden, owner of Betsey Johnson’s intellectual property rights since 2010, is confident that the label still has a bright future. “While this particular licensee may be closing, the Betsey Johnson brand is stronger than ever, with a thriving wholesale business across a range of product categories,” Madden said. “As the owners of the Betsey Johnson brand, we at Steve Madden remain firmly committed to Betsey Johnson—the designer, her vision, and our growing wholesale business—which is up over 50 percent so far for 2012.”

Will you miss Betsey Johnson’s clothing if it disappears from store shelves?

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