Feb. 6--TOKYO -- Japanese retailer Aeon Co. said Thursday it will extend a $200 million loan to its U.S. clothing affiliate Talbots Inc., which will use the whole amount for repayments to its creditor banks.

Talbots has lately seen deterioration in its business, with same-store sales from last November to January this year falling 25 percent from a year earlier.

Aeon decided on the financial help in a bid to prevent fears from spreading among Talbots' business partners and its creditor banks, the company said.

Aeon will also guarantee all the U.S. company's debts.

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