The Talbots Inc. (Hingham, Mass.) has announced it is putting its J. Jill brand on the selling block to focus on its core Talbots business. The specialty retailer purchased The J. Jill Group Inc. (Quincy, Mass.) in February 2006 for about $517 million in cash.
Talbots also reported a 13.9 percent drop in same-store sales during the third quarter following a 12 percent decline in the second quarter. J. Jill will be the latest division to be shed this year; Talbots shuttered its kids', men's and United Kingdom shops in the spring.
“In this environment, with the kind of credit markets we're in, to try and turn around two brands is very challenging,” said Talbots ceo Trudy Sullivan. “In this market, in this economy, you have to take a conservative approach to how to manage the business and liquidity.”
At the time of the 2006 takeover, retail analysts gave mixed reviews on the deal, according to The Boston Globe. Some hailed the move as a way for the mature Talbots brand to grow the business and gain a formidable grip on one of the fastest-growing apparel markets: women 45 and older. Others questioned the ability of Talbots – which had never made an acquisition – to turnaround J. Jill, a catalog business that rapidly expanded into 200 stores, and had repeatedly missed earnings estimates.
The decision to sell J. Jill comes just over a year after Sullivan, a former executive at Liz Claiborne Inc. (New York), took the helm at Talbots. Liz Claiborne had initially bid on the J. Jill business. When the deal with Talbots was disclosed, reported The Globe, Liz Claiborne ceo Paul Charron said, “We are disappointed we were unable to acquire J. Jill . . . However, we are financially disciplined and will not overpay.”