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The Betsey Johnson Layoffs Reportedly Began Six Weeks Ago

LAS VEGAS, NV - FEBRUARY 14: Fashion designer Betsey Johnson appears at the MAGIC clothing industry convention at the Las Vegas Convention Center as she promotes her Fall 2012 line on February 14, 2012 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images)

Following Thursday's news that the brand filed for Chapter 11 bankruptcy comes word from Elle that Betsey's design team was also fired yesterday and sent off into the unemployed world with champagne and cupcakes. But they weren't the first ones to go; fifteen full-time staffers and freelancers were canned a month and a half back, and "as of two weeks ago we weren't allowed to spend any money — we couldn't buy trims, fabric, send out samples to be made domestically or abroad," a source said.

Photo: Ethan Miller/2012 Getty Images

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