Katy Perry was too sexy for Elmo on “Sesame Street,” but she might be just right for Steve Madden on Seventh Avenue.
The “Teenage Dream” singer is said to be in talks with the chief executive of his eponymous shoe brand to collaborate on a fashion venture similar to Sarah Jessica Parker‘s alliance with Halston.
Madden has already partnered with Mary-Kate and Ashley Olsen for their Olsenboye and Elizabeth and James clothing lines, and with Zac Posen for his lower priced Z-Spoke label.
Bodacious Perry is known for her skin-tight costumes. Her duet of “Hot N Cold” with Elmo was pulled from the “Sesame Street” Web site last month after parents complained she was showing too much cleavage. Reps for Madden and Perry did not reply to our phone calls and e-mails.
Meanwhile, Madden is saving designer Betsey Johnson from creditors. The Queens-born tycoon already has a licensing deal with the women’s contemporary brand to produce shoes and handbags for it.
In September, Madden took over a $48.8 million loan to Betsey Johnson, which was in default. The company had until Aug. 20, 2012, to pay it back or else Madden would own the company.
But sources say Madden is expected to forgive the loan altogether by the end of the week, providing Betsey Johnson with a financial resuscitation. Madden is not seeking a hostile takeover.
“Steve Madden is not taking over the company, and Betsey Johnson is not leaving the company,” Jonathan Friedman, Betsey Johnson’s executive vice president and chief operating and financial officer, told Page Six.
Friedman wouldn’t comment on the loan other than to say, “We’re in positive talks with them and looking to finalize an arrangement.”
Longtime Betsey Johnson chief executive Chantal Bacon left the company this week, having planned her departure since April, long before the Madden deal.