Women's wear retailer The Talbots Inc has finalised the terms of a $50m loan from its majority shareholder, the Japanese retail conglomerate Aeon Co Ltd, to support its turnaround plan.

The Hingham, Massachusetts based company, which operates 869 Talbots and J Jill branded stores, confirmed on Friday (18 July) that the new credit facility, which matures on 28 January 2012, would increase its total working capital borrowing capacity to $215m.

When the credit facility was announced last month, it provided some reassurance about the retailer's liquidity after it was forced to revise payment terms with its major vendors in April when two major banks decided to cancel their lines of credit.

The new $50m credit line is expected to cover purchases from smaller vendors.

As part of a long-range cost cutting and reorganisation plan the retailer is shuttering 100 underperforming stores, including its Kids and Mens concepts, to focus on women aged 35 plus.

It is also axing 129 jobs, or around 9% of its corporate staff, in a move that will save around $14m a year.