The conference call followed the disclosure of a decision by the retailer’s banks to stop supplying Talbots with letters of credit, which resulted in a 40% drop in the retailer’s share price.
Analysts and retail commentators in the US said the move was further evidence of increasingly tighter credit availability in the retail sector.
Talbots’ new supplier deal includes an “open account” arrangement with suppliers, which has extended payment from 22 days to 45 days. The new terms cover suppliers that make up about 75% of the company’s buying from outside the US.
Talbots added that it had secured US$165 million (£83m) of working capital through lines of credit, which would help to fund its turnaround strategy.
The company said it would continue talks with banks to extend its credit lines if necessary, although it stressed it would be unlikely to need it.
During the conference call, the company reiterated its commitment to growing its turnover by 3% for the 2008 financial year.
Earlier this month, Talbots outlined plans to open 35 stores for its Talbots Woman fascia over the next five years, as well as 40 outlet stores in the next three years (Drapers, April 12).
Talbots has about 1,400 Talbots and J Jill stores in the US, Canada and Japan.