Talbots stock falls on credit loss news
Wednesday, April 16, 2008 2:54 PM
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The Talbots Inc. stock fell as much as 32 percent Wednesday to $8.57 per share after the company announced the day before it had lost $265 million in credit.
The announcement was made in a Securities and Exchange Commission filing.
Talbots (NYSE: TLB) stock opened at $12 per share Wednesday. The stock traded at $8.96 per share late in the day.
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Tuesday, the Hingham, Mass.-based specialty retailer of women's classic apparrel, said it was informed last week by two banks -- The Hongkong and Shanghai Banking Corp. and Bank of America -- that the lenders would not continue providing credit to the retailer. HSBC had provided $135 million credit limit; Bank of America had provided $130 million.
The company had just been approved for an $18 million extension of credit provided by Mizuho Corporate Bank Ltd., said the SEC document.
Talbots reported a $171 million loss in the fourth quarter that ended Feb. 2, 2008.
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