Talbots investor sues retailer over refinancing plans

NEW YORK A Talbots investor has sued the retailer, claiming its refinancing plan with majority holder Aeon was unfair to minority stockholders, according to a Reuters report.

Reuters reported that shareholder John Campbell filed a lawsuit against Talbots and the U.S. unit of Aeon in Delaware Chancery Court in Delaware Chancery Court. Campbell is seeking to block Talbots plans to buy back Aeon's stake and reduce its debt by about $330 million.

"The Aeon buyout was structured as an early debt repayment with nominal consideration for Aeon's equity stake so that Aeon could avoid paying taxes on the gain from the sale of its Talbots stock," the suit said.