Betsey Johnson Joins Forces With Private Equity

Betsey Johnson is the latest designer to sell a majority of her company to a private equity company. Castanea, based in Boston, is run by former co-C.E.O.s of Neiman Marcus Group. Although the fund was founded in 2001, this is their first luxury buy, but according to one of the founders, Robert Smith, it will not be the last. He told WWD they are looking for more luxury brands to buy.

Johnson was a bit of an odd choice. She's a grandmother, 65 years old and been in business for 30 some years, but Smith said:

"They're at the beginning of their evolution. Our hope is to really assist them in building the right team and to manage this growth and opportunity well."

Beginning of its evolution after 30 years? Now that's an accomplishment. I'm not sure how relevant Betsey is to a new generation of consumers -- particularly outside of the U.S. But having her 32-year-old daughter Lulu working with her might have convinced the suits at Castanea that the brand has legs for more than just Betsey's famous catwalk cartwheels.