Talbots closing specialty stores
Birmingham Business Journal
Talbots Inc. is closing 78 stores around the country that sell children's and men's clothing.
The chain has four stores in Alabama, including one at the Galleria, a women's and children's store at The Summit in Birmingham and two others in Montgomery. The company did not disclose whether the Alabama stores would be affected.
A company spokeswoman said the stores are expected to close by the end of the year. In all, Talbots will close 78 stores throughout the United States, including 66 Talbots Kids and 12 Talbots Mens stores. The closings will end 800 jobs.
Hingham, Mass.-based Talbots (NYSE:TLB) said the closings stem from a review of operations that determined the company should focus on women customers aged 35 and older.
Talbots management conducted a strategic review of its kids and men's concepts, which determined that these two business concepts did not demonstrate the potential of delivering an acceptable long-term return on investment.
As a result of this decision, Talbots expects total revenue will be impacted by $100 million on an annualized basis. However, the company expects that the ongoing operational benefit resulting from these store closings will be in the $13 million to $15 million range, or 15 cents to 18 cents per diluted share.
In a statement, Talbots President and CEO Trudy F. Sullivan said the decision to discontinue the kids and men's concepts will allow the company to redirect resources and capital toward its core women's stores.
Talbots is an international specialty retailer and direct marketer of women's apparel, shoes and accessories. The company currently operates a total of 1,428 stores in 47 states, the District of Columbia, Canada and the United Kingdom.
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