Talbots’ Credit Crunch Raises Alarms

Talbots Inc.?s credit crisis might not be an isolated event, as lenders grow more nervous about the retail sector, experts said.

?Could this be the onset of a liquidity crunch for some of the retailers? Sure.? –Tiffany, Fitch Ratings Co.

Shares of Talbots continued on a downward spiral Thursday, falling 14.5 percent to $7.83. That followed a 28.7 percent decline Wednesday after the Hingham, Mass.-based retailer said Bank of America and HSBC would pull lines of credit. The Dow Jones Industrial Average finished fractionally ahead on Thursday as the S&P Retail Index crept up 0.2 percent.

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