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Talbots files Form 8-K
17 Apr '08
3 min read
Additionally, Talbots noted that its currently available working capital lines total $165 million, an amount the Company believes is sufficient to fund the Company's working capital needs, assuming it achieves its 2008 operating plan.
The Company further noted that adjusting for the $40 million of additional cash flow expected to be provided by the move to “open account,” it currently anticipates that 2008 operating cash flow will be approximately $200 million.
Assuming the Company achieves its 2008 operating plan, it expects to be in compliance with all covenants of its acquisition term loan agreement for fiscal 2008.
Talbots President and Chief Executive Officer, Trudy F. Sullivan, said, “While the credit and financial markets are in a state of considerable flux, we have an alternate plan in place, and have revised most of our vendor relationships to maximize the Company's financial flexibility and greatly reduce our need for letters of credit.
We are confident in the long-term benefits of these actions as we proceed with the execution of our strategic plan.”
The Form 8-K filed on April 15, 2008, reported, among other things, that the Company's existing $135 million letter of credit facility with HSBC would be reduced in increments and would not be renewed after August 8, 2008. The Company's other letter of credit for $130 million was not replaced, the Company reported.
The Company further noted that adjusting for the $40 million of additional cash flow expected to be provided by the move to “open account,” it currently anticipates that 2008 operating cash flow will be approximately $200 million.
Assuming the Company achieves its 2008 operating plan, it expects to be in compliance with all covenants of its acquisition term loan agreement for fiscal 2008.
Talbots President and Chief Executive Officer, Trudy F. Sullivan, said, “While the credit and financial markets are in a state of considerable flux, we have an alternate plan in place, and have revised most of our vendor relationships to maximize the Company's financial flexibility and greatly reduce our need for letters of credit.
We are confident in the long-term benefits of these actions as we proceed with the execution of our strategic plan.”
The Form 8-K filed on April 15, 2008, reported, among other things, that the Company's existing $135 million letter of credit facility with HSBC would be reduced in increments and would not be renewed after August 8, 2008. The Company's other letter of credit for $130 million was not replaced, the Company reported.
Talbots Inc
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