Talbots announces job cuts, expense reduction
Talbots Inc., the embattled Hingham-based retailer best known for classically styled clothing aimed at middle-age women, said it plans to cut 370 jobs, or about 17 percent of its corporate headcount, and to close 20 underperforming stores.
The job cuts will impact 279 of the company's 1,594 employees in Massachusetts, a Talbots spokeswoman said in an e-mail.
The announcement came as the company unveiled key components of its $150 million "expense reduction program." (At right is a photo taken from Talbots' online catalogue.)
Talbots also said that Aeon Co., Ltd., which is Talbots majority shareholder, "has committed to provide Talbots a $200 million unsecured term loan facility, maturing at Talbots option for a period of up to three years from closing, to pay in full the company’s existing acquisition debt."
In a press release, Talbots said: "The company has acted upon key initiatives that it expects will result in approximately $85 million of expense savings to be realized in fiscal 2009. In addition, the company anticipates that a portion of the remaining approximately $65 million of its new expense reduction program will occur in fiscal 2009."
Talbots president and chief executive Trudy F. Sullivan said in a statement, "The ongoing impact of the global economic crisis on our business demands that we take further immediate and decisive action to drive greater efficiencies throughout our organization.We remain confident in our strategic plan and in the long-term value of our franchise."
To read the company's press release, please click here.
To read some Globe coverage of Talbots, please click here.
(By Chris Reidy, Globe staff)