Hingham, Mass. Talbots Inc. announced Monday that it has entered into revolving credit agreements, worth $150 million, with three banks. The funds will convert the chain’s existing uncommitted working capital lines into committed credit lines.
Talbots has a $75 million agreement with Mizuho Corporate Bank Ltd.; a $50 million credit from Sumitomo Mitsui Banking Corp.; and a $25 million agreement with The Norinchukin Bank.
The retailer already has a $50 million credit with Aeon Inc., a subsidiary of its majority shareholder. With these new agreements, the chain now has $200 million of its $215 million working capital borrowing capacity committed.
Talbot’s is currently negotiating with a fourth bank to secure the remaining $15 million.