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New York The Talbots Co. disclosed in a filing with the Securities and Exchange Commission late Tuesday that two banks—Bank of America Corp. (BofA) and The Hongkong and Shanghai Banking Corp. (HSBC)—would not continue providing credit totaling $265 million to the retailer.
BofA had provided a $130 million credit line, with HSBC providing the remainder.
The filing said Talbots had renegotiated payment terms with unspecified vendors from which it purchased the bulk of its merchandise and was seeking similar agreements with other vendors. It also said the retailer was actively pursuing other sources of lending. The company had just been approved for an $18 million extension of credit provided by Mizuho Corporate Bank, according to the filing.
Some analysts have questioned the ability of Talbots to continue borrowing money, purchasing inventory, and paying vendors amid the current economic slump.