There's good news and bad news for Betsey Johnson.
On Thursday, papers were filed with the Securities and Exchange Commission that Steven Madden Ltd. will take over the $48.8 million loan BJ has defaulted on.
However, if Betsey can't pay back the copycat by August 20, 2012 Madden could end up owning the brand because the company's intellectual property was used as collateral to secure the loan.
Other items used as collateral include "personal property, accounts, deposit accounts and cash, equipment, fixtures, general intangibles, goods [and] inventory."
Wow, that's a lot to lose.
Lets hope she can pay it back!
[Image via Flashpoint/WENN.]
Tags: default, loan, sec, securities and exchange commission, steven madden ltd