Betsey Johnson LLC, retailer of quirky female fashions, filed Chapter 11 bankruptcy, Women’s Wear Daily reports.
Betsey Johnson currently has 63 stores around the country. Up to 350 staffers could lose their jobs as the company consolidates.
The company will now set its boutiques on the back burner and focus on its mid-priced attire which is sold at Macy’s.
The shift shows the label’s transition from high-end fashion to department store fare.
So far there’s no word from Betsey herself.
Here’s what the company’s CFO told Women’s Wear Daily:
Betsey Johnson LLC’s chief financial officer Jonathan Friedman said in a release, “The decision to seek protection under chapter 11 comes after months of rigorously pursuing alternative restructuring arrangements to address Betsey Johnson LLC’s cash flow problems. After 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. Accordingly, our board made the determination that a Chapter 11 store closing process will likely be the best way to maximize the value of the company’s assets, for the benefit of its creditors.
Last May, we wrote about the new kid on the block, Pinterest. A self-proclaimed “virtual pinboard,” Pinterest allows users to collect images, quotes, recipes, etc. from across the web and organize them onto their own “pinboards” which can be shared with other Pinterest users. Examples of common pinboard inspirations are Wedding boards, Food & Drink boards, Travel & Places boards, & Home decor boards.
Although Pinterest had shown promise back in May, there would have been no way to predict the type of success they have seen since. Having grown 84% in Unique Visitors since we last wrote about them and 50% from October to November alone, it seems that Pinterest has piqued the interest of more than a few.
Having recently joined Pinterest myself, I was curious to see how Pinterest might play into the role of marketing. I noticed that a lot of my friends were posted clothing & material items they liked in almost a “wishlist” sort of way, so I was curious to see if this could double as a sort of targeted social advertising.
I decided to look at incoming and outgoing traffic to and from Pinterest.com to see how virtual pin boards might affect consumers.
While most of the Top 10 Referrals to Pinterest.com are among the top sites on the Internet, the more interesting data starts at #11. Etsy.com, Amazon.com, Craigslist.com and Ebay.com all bring at least .39% of all traffic to Pinterest.com – not to mention their growth in referrals this past November. Etsy.com increased its referrals to Pinterest.com by 7%, Ebay by 23%, and Amazon by 50%!
Looking further into the data, we see that Walmart, Toys R’ Us, Target, Zulily, Baby Center, Kohls, Houzz, JC Penney, Best Buy, and Zazzle are all within the Top 100 Referrals to Pinterest.com. What could this all mean? In the context of Pinterest, it would seem that users are inspired and excited by the products they see on these websites and want to add them to their visual collections and share them with friends. But once users leave retailers for Pinterest, are the retailers benefiting?
Well, one could argue that the impressions made on Pinterest users who view the shared item are enough value in themselves. Viewing a cute dress for a little girl on Zulily.com might inspire a Pinterest user to visit Zulily in the future or even make a purchase at a later date. But could there be any retail sales that start directly at Pinterest.com? I checked out outgoing traffic from Pinterest.com to get the scoop.
As you can see, Etsy.com is the #6 destination from Pinterest.com, swiping 1.5% of all outgoing traffic. Amazon, Ebay, Craigslist, & Houzz are all in the Top 30 destinations users immediately visit after Pinterest.com. Target, Walmart, & Anthropologie are also among the Top 100 destinations from Pinterest.com. Interestingly enough, Anthropologie wasn’t among the Top 100 incoming destinations which means that the content from Anthropologie shared must be expectionally engaging with Pinterest users.
Are you on Pinterest? Have you ever been inspired to buy something after looking at a friend’s virtual pin board? If you are a retailer, or online marketer, what do you think the future holds for Pinterest in this context?
Leave your comments below!
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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