Betsey Johnson Files for Bankruptcy

Betsey Johnson during her  New York Spring 2012 Runway Show.

Fashion designer Betsey Johnson's company filed for bankruptcy protection Thursday night in New York, following poor performance in its chain of retail stores.

The Chapter 11 filing by Betsey Johnson LLC will see most of the chain's 63 stores close, a person familiar with the matter said. Steven Madden Ltd., which owns the Betsey Johnson license, likely will keep four or five flagships in New York City and a few other cities, the person said.

The company employs about 400 people. Its largest creditors include Haskell Jewels, American Express and FedEx Corp., according to the filing.