912263--4/16/2009--TALBOTS

related topics

{customer, product, revenue}

{debt, indebtedness, cash}

{stock, price, share}

{cost, contract, operation}

{stock, price, operating}

{system, service, information}

{acquisition, growth, future}

{condition, economic, financial}

{tax, income, asset}

{personnel, key, retain}

{loss, insurance, financial}

{interest, director, officer}

{product, market, service}

We may not be able to achieve our expected improvement in operating results, working capital and cash flows. We may not be able to extend the maturity dates of our existing credit facilities. Our 2009 financial and strategic plans are based on a number of material assumptions which may not occur. Any disruption in our supply of merchandise would materially impact us. If our goodwill or other intangible assets become further impaired, we may need to record significant non-cash impairment charges. We will need sufficient liquidity to fund the closing of our underperforming stores. There can be no assurance of our success in selling our J. Jill business, nor the price or terms of such sale, and if a sale is consummated we may remain contingently responsible for certain risks and obligations. Our level of indebtedness impacts our ability to respond to the changes in the economy. We are subject to credit risk and to potential increased defaults and delinquencies on our customer charge card account portfolio. Any customer concerns with our long term sustainability as a business may impact our merchandise sales. If we do not meet the NYSE continued listing requirements, our common stock may be delisted. Our loan agreements contain provisions which may restrict our operations and proposed financing and strategic transactions. We recently suspended payment of dividends on our common stock and we cannot predict when payment of dividends may resume, if at all. We may not be able to maintain proper inventory levels. We may continue to experience fluctuations in operating results. Our overseas merchandise purchasing strategy makes it vulnerable to a number of risks. If we fail to maintain the value of our brand, sales are likely to decline. Talented personnel are critical to our success. We cannot assure that the current management team or the additions to our executive leadership team will result in increased profitability for us. A major failure of our information systems could harm the business. Certain members of our Board of Directors are affiliated with our majority shareholder, which may create potential conflicts of interest.

Full 10-K form ▸

912263--4/16/2009--TALBOTS_INC