Home / Knowledge / News / Fashion / Talbots to exclusively focus on its core brand business
Talbots to exclusively focus on its core brand business
Nov '08
The Talbots Inc announced results for the third quarter ended November 1, 2008. In addition, the Company announced it has secured agreements from Mizuho Corporate Bank, Ltd and Sumitomo Mitsui Banking Corporation to convert their existing uncommitted working capital lines to committed working capital lines.

Third quarter net loss from continuing operations was $14.8 million or $0.28 per diluted share compared to last year's net loss of $0.9 million or $0.02 per share on a comparable basis. The Company results from continuing operations include its core Talbots Misses, Petites, Womans, Collection, and Accessories & Shoes concepts.

Trudy F. Sullivan, President and Chief Executive Officer of The Talbots Inc., commented, “Our third quarter results reflect the impact of the deteriorating macro-economic conditions that started in mid-September. While we have had positive customer response to our reinvigorated Talbots brand merchandise and marketing efforts, this was not enough to offset a steep decline in consumer traffic and spending that we and most others across our entire industry have experienced.

“In the near-term, we continue to tightly control our inventory and significantly cutback discretionary spending, both of which drive further improvements in working capital as we focus on enhancing our cash flow to best manage the business.”

The Company has also announced that with the help of Aeon, its majority shareholder, it has been in negotiations to convert its uncommitted working capital lines to committed working capital lines. After a review of Talbots strategic plan, including the decision to sell the J. Jill brand, Mizuho Corporate Bank, Ltd and Sumitomo Mitsui Banking Corporation have agreed to convert their existing uncommitted $75 million and $50 million working capital lines of credit facility to committed lines, respectively, subject to the completion of due diligence and applicable loan documentation. Similar discussions are currently underway with the other lender banks, who have indicated their support of this direction.

Ms. Sullivan commented, “This is a great step forward for Talbots as it serves to stabilize our liquidity during these most difficult and uncertain times, enabling us to focus on implementing the key strategic initiatives that will drive improved performance of our business.”

Continued emphasis on inventory management results in total inventory down 23% at end of third quarter.

Improved merchandise operating gross margin of approximately 100 basis points over last year.

Completed the closing of non-core Talbots Kids/Mens/U.K. businesses.

Gained positive momentum with each new monthly merchandise delivery throughout the quarter as measured by improving sell through performance. This trend continues into November, particularly with regards to the gift giving assortment.

Positive consumer response to innovative marketing initiatives during the quarter resulted in healthy reactivation of lapsed customers.

Must ReadView All

Courtesy: Stone Island

Apparel/Garments | On 25th Jun 2018

Stone Island has mastered ingredient branding: Braind

Italian high-end men's apparel brand Stone Island tops the list of...

Courtesy: Tecnorama

Textiles | On 25th Jun 2018

'Tecnorama automatic dyeing system offers efficiency'

Italy based Tecnorama’s fully-automatic machinery for dispensing...

Courtesy: Lenzing

Textiles | On 25th Jun 2018

Lenzing launches Veocel nonwoven speciality brand

Leading fibre company, the Lenzing Group has unveiled Veocel, the new ...

Interviews View All

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Urmil Arya

Sushila International, a well established textile organisation established ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search