Talbots (NYSE: TLB) is a high-end clothing company with stores in the U.S., Canada, and the UK. In early 2008, Talbots closed its men's and children's operations, in order to focus on high-income women over the age of 35, in particular the 40 million baby boomers who are nearing retirement.^[1] Talbots merchandising strategy focuses on honoring the classics which emphasizes modern classic, relevant, and updated merchandise designed to appeal to baby-boomer and generation-X consumers, and they define their brand image as “Tradition transformed”.^[2]

The worsening state of the U.S. economy, however, has caused the company trouble. Two of Talbot's lenders decided to not renew $265 million in credit to to the company, limiting its ability to borrow money and pay for inventory and possibly setting it up for the bankruptcy. Talbots competes with other luxury retailers like AnnTaylor Stores (ANN), Chico's FAS (CHS), and Limited Brands (LTD).

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