Apparel retailer with footwear business line, Talbots Inc, announced that it will close all 78 of its Talbots Kids and Talbots Mens concepts, including 66 Talbots Kids and 12 Talbots Mens stores, throughout the United States by September 2008.
The decision is part of Talbots' strategic business review that was announced on 9 October 2007 and is expected to be completed by April 2008.
The strategic review revealed that these concepts did not demonstrate the potential to deliver acceptable long-term return on investment. The executive management team, with the full support of the Company's Board of Directors, determined that discontinuing these businesses will enable The Talbots, Inc. to redirect resources and capital towards its core businesses, including Talbots Misses, Petites, Womans, Collection, Accessories & Shoes and J. Jill Missy, Petites and Womans.
The closures will result in the elimination of about 800 full-time and part-time positions, or approximately 5% of The Talbots Inc. total workforce. Talbots is considering ways to allow some employees to apply for other jobs within the company.
As a result of this decision, Talbots estimated that the closings will cost it approximately US100 million in annual revenues.
The Talbots, Inc. is a worldwide specialty retailer of women's, men's and children's apparel, shoes and accessories. The Talbots, Inc. acquired The J. Jill Group, Inc., which is now a wholly owned subsidiary of the company on 3 May 2006. Talbots reported Friday that sales results for both main Talbots brand and J.Jill stores were running below expectations during its fourth quarter in the current fiscal year.
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