Steven Madden (NASDAQ:SHOO) said Friday it has acquired a majority of Betsey Johnson’s assets in a deal that relinquishes earlier debt taken on by the shoemaker in August.

The $27.4 million being paid will help reduce the original $48.8 million loan that was in default when Steve Madden purchased the women’s apparel company two months ago for $27.6 million.

In exchange, Steve Madden will receive Betsey Johnson’s trademarks and intellectual property, including its core and related brands names. It will also take a 10% equity interest in the company.

Steve Madden CEO Edward Rosenfeld said the acquisition will add to its “growing portfolio” of brands.

“Betsey Johnson is an iconic brand with a rabid consumer following, and we believe it offers meaningful growth opportunity for our business,” he said.

Casteanea Partners, which has been a Betsey Johnson partner for three years, has agreed to increase its equity investment in the retailer.

In addition, Betsey Johnson and Steve Madden have entered into two new license agreement under which the footwear designer has granted the women’s clothing line the exclusive license to operate Betsey Johnson retail stores in the US, Canada and England.

Rosenfeld said the agreement will support the “continuation and growth” of Betsey Johnson’s apparel and retail business.