But it's not because Betsey couldn't pay him back.
As we mentioned last month, Steve took over the $48.8 million loan BJ defaulted on. To secure the loan, the designer used intellectual property as collateral, which would become Madden's if she didn't pay him back by August of 2012.
However, the two have come to an agreement that's has made Steve Madden the owner.
The COO of Betsey Johnson couldn't be happier, saying:
"Whenever you come out of a situation with a good partner, cash coming into the business and the elimination of all debt, what’s not to love?"
Now that Madden's in the drivers seat, he wants to make shoe sales 30% of the business and expand the daytime dress collection.
We're sure he won't have any problems with the shoes.
[Image via Flashpoint/WENN.]