A day after agreeing to sell its J. Jill unit to Golden Gate Capital, The Talbots Inc. revealed a first-quarter loss and said it would cut jobs to reduce costs.
In the three months ended May 2, the Hingham, Mass.-based retailer recorded a loss of $23.6 million, or 44 cents a share, versus profits of $1.6 million, or 3 cents a share a year ago.
The retailer also said it would cut corporate headcount by 20 percent across all locations. The move will add up to about $21 million in annualized savings, the company said.
Sales in the quarter fell 26.2 percent to $306.2 million from $414.8 million in the comparable period.
“Looking at our first quarter results, sales remained difficult and while in-line with our expectations, we are not satisfied,” said president and chief executive officer Trudy Sullivan.
On Monday, Talbots said it would sell J. Jill to Golden Gate for approximately $75 million. The chain had been on the market since November.
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