Talbots Q4 loss doubles

Hingham, Mass. Despite turnaround efforts that include cost-cuts and new design, Talbots reported a loss of $366.5 million for the fourth quarter ended Jan. 31, compared with a loss of $171.4 million vs. a year ago. The news overshadowed the chain’s announcement that it secured a $150 million loan to support business operations.

The retailer’s sales for the quarter fell 16% to $327.9 million, vs. $427.7 million last year. Same-store sales declined 24.6%.

For the full fiscal year, Talbots lost $561 million, compared with a year-ago loss of $189 million. Revenue also fell 12% to $1.50 billion, from $1.71 billion.

The steep losses eclipsed the company’s announcement that it gained a new $150 million loan facility from majority owner Aeon Co. Ltd. of Japan. The company expects the new facility to boost liquidity and help the company "navigate through these most turbulent times,” said the chain’s CEO Trudy Sullivan.

In hopes of further cutting costs, Talbots said it has signed a letter of intent with Li & Fung Ltd., to secure the Hong Kong-based company as its primary sourcing agent. The move supports other cost-saving strategies Talbots embarked on during fiscal 2009, including shuttering its Talbots Kids, Talbots Mens and Talbots U.K. operations; pursuing the sale of the J. Jill brand, and closing 16 Talbots locations.