Talbots Loses Credit Line at Two Banks
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.
Kroger offers free groceries for tax rebates
CINCINNATI Kroger has reported that starting May 2, customers can exchange their tax refund or economic stimulus checks for gift cards that will be loaded with an extra $30.00, $60.00 or $120.00, depending on the amount originally added.
David Dillon, Kroger chairman and ceo, said. “Kroger’s program allows our customers to stretch their grocery dollars further. We are excited about the opportunity to touch the lives of millions of families across the country by helping them extend their household budgets through this special program.”
The program will be available throughout Kroger stores nationwide — including Kroger, Baker’s, City Market, Dillons, Fred Meyer, Fry’s, Gerbes, Hilander, Jay C, King Soopers, Owen’s, Pay Less, Ralphs, Smith’s and QFC stores.
eBay sees boost in 1Q revenue
SAN JOSE, Calif. eBay posted first quarter revenue of $2.19 billion, up $424 million from the same period last year. Revenue growth was driven primarily by Marketplaces net transaction revenues, the ongoing expansion at PayPal, Skype and the company’s global classifieds business. The company recorded net income on a GAAP basis of $460 million or 34 cents per diluted share, and non-GAAP net income of $562 million or 42 cents per diluted share.
“This was a very strong financial quarter for the company,” said eBay president and ceo John Donahoe. “The results reflect the strength provided by our diverse portfolio of businesses. Our stability and growth continues to give us the confidence to make innovative changes to our products to keep customers engaged for years to come.”
For the full year 2008,eBay now expects net revenues in the range of $8.7 billion to $9 billion with GAAP earnings per diluted share in the range of $1.35 to $1.40 and non-GAAP earnings per diluted share in the range of $1.70 to $1.75.
For the second quarter 2008, eBay now expects net revenues in the range of $2.1 billion to $2.15 billion with GAAP earnings per diluted share in the range of 30 cents to 32 cents and non-GAAP earnings per diluted share in the range of 39 cents to 41 cents.