Women's Wear Daily reporting that Steve Madden has increased his stake in Betsey Johnson from a $48.8 million loan to ownership of the brand’s intellectual property. Through licensing deals with Betsey Johnson LLC, Madden will get royalties from Johnson’s firm and its other licensees.
It's not clear to me if Betsey has been struggling in the current retail environment or was just looking to partner up with a deep pocketed backer. Have to suspect the former if the relationship went from loan to equity stake. Hopefully, it will be a positive for both parties, but hoping the new relationship doesn't suck the creativity out of her designs. I know Steve Madden knows retail but selling apparel a bit different game, n'est-pas?