Talbots to restructure, cut debt, and merge with Conn. company

Troubled retailer Talbots Inc. yesterday disclosed a major financial restructuring that will cut its heavy debt load and buy out its largest shareholder, a move that puts the Hingham women’s clothing chain on firmer financial ground.

The retailer, which also posted third-quarter profit yesterday after five consecutive quarterly losses, said it will merge with a Connecticut company made up of Wall Street heavy hitters that will acquire 60 to 69 percent of Talbots stock for between $300 million and $350 million. The company, BPW Acquisition Corp., also will use the money to buy out the 54 percent stake in Talbots held by Aeon USA Inc., a unit of Japan’s largest supermarket retailer Aeon Co.. . . more