Talbots to close Kids, Mens concepts

HINGHAM, Mass. Talbots is closing its Talbots Kids and Talbots Mens concepts by September 2008.

The company reported today that after reviewing its strategic performance, it determined that these concepts failed to show potential to deliver acceptable long-term return on investment. Talbots said that it will redirect the resources and capital from these discontinued businessess toward its core concepts, including Talbots Misses, Petites, Womans, Collection, Accessories & Shoes and J. Jill Missy, Petites and Womans.

Trudy Sullivan, Talbots president and ceo, commented, “This is a very important strategic move that will greatly contribute to our ability to focus and reinvigorate our core brands and provide sustainable long-term shareholder value. By exiting these concepts, we can focus exclusively on our company’s core strength – the age 35 plus female market, where we believe there is significant opportunity for profitable growth in both our Talbots and J. Jill brands.” 

Talbots said it will closes about 78 stores throughout the U.S. According to the company, about 800 employees will be affected by the closures.

As a result of these actions, the company said it currently anticipates total revenue to be impacted by approximately $100 million on an annualized basis. Talbots said it currently expects that the ongoing operational benefit resulting from these closings would be approximately $13 to $15 million, or 15 cents to 18 cents per diluted share, on an annualized basis.