Talbots Inc., the troubled Hingham-based company known for women’s clothing, said today that its board of Directors has formally begun the process of identifying a successor to president and chief executive Trudy F. Sullivan.
Sullivan’s contract expires in January, but it has a one-year automatic renewal, according to securities filings, and The Wall Street Journal reported that Talbots has started a search for a new president, who could succeed Sullivan.
Today Talbots said it has formed a search committee comprised of board members and has engaged Spencer Stuart to conduct the search.
Sullivan intends to retire once a successor has been identified and has agreed to continue to serve as chief executive in the interim to ensure a smooth transition, Talbots said in a press release.
Last week, Talbots said it is slashing another 100 jobs at its headquarters, abruptly suspending its national advertising campaign, and embarking on a new $50 million cost-cutting effort after reporting its third loss in the past four quarters. Third-quarter sales dropped 6.6 percent to $279.5 million, and the company lost $22 million between August and October.