The Talbots Inc. secured a new $75 million term loan, boosting its liquidity as the retailer searches for a replacement for president and chief executive officer Trudy Sullivan and considers its strategic options, which could include a sale of the firm.
The new term loan was led by Wells Fargo Bank and is secured by a first lien on some of the retailer’s real estate and on its intellectual property, equipment and fixtures, as well as a second lien on the rest of its assets. It carries an interest rate equal to 10 percent plus the London Interbank Offered Rate. Talbots also amended its $200 million secured revolving credit facility with GE Capital.
“These transactions enhance the company’s liquidity, and provide Talbots with greater financial flexibility to support the board’s evaluation of a full range of strategic alternatives,” said Sullivan, who is leading the firm until a successor is found. “We are pleased to have the continued support of GE Capital, as well as this new commitment led by Wells Fargo.”
In December, Talbots turned down a takeover offer from Sycamore Partners, which owns 9.9 percent of its stock, and said it would look into strategic alternatives with the help of Perella Weinberg Partners.
“The board has not set a definitive timetable for the completion of its evaluation and the company stated that there can be no assurance of any transaction as a result of the board’s review,” Talbots said. Talbots has 517 stores across 46 states.
Madonna turns 59 today, marking another year of show-stopping, one-of-a-kind bold looks from the singer. To celebrate, we took a look at the superstar's most memorable fashion moments. Here, Madonna sits front row at Versace's spring runway show in 1995. See more exclusive photos from the #wwdarchive on WWD.com. #wwdeye (📷: Cédric Dordevic)
WWD asked a handful of creative directors to evaluate the September covers of leading women's fashion magazines. How do they think the covers this year compare with years gone by, and what do they say about the current status of the publication? Link in bio. (GIF by @hypebreast)
"Stephen King is such a master, but I don't like being scared - there's enough that's really scary. How about the morning's news?" says Holland Taylor in an interview with WWD. See what else the actress said about starring in the TV adaptation of King's thriller "Mr. Mercedes" on WWD.com. #wwdeye (📷: @jgreenery)