UPDATE 1-Talbot's CFO to retire, names dual CFO/COO

NEW YORK, Dec 8 (Reuters) - Apparel retailer Talbots Inc (TLB.N) said on Monday its chief financial officer is retiring and will be replaced by its newly appointed chief operating officer, who will hold both roles.

Talbots named Michael Scarpa, former chief operating officer at Liz Claiborne (LIZ.N), as Talbots' COO effective immediately.

Ed Larsen, Talbots' chief financial officer, will retire effective January 5, at which time Scarpa, 53, will also take on the CFO role, the company said.

Larsen, 63, will remain with the company as a strategic advisor and will assist with the transition, the company said.

Talbots, which caters to women aged 35 and over, is majority owned by Japan's Aeon Co (8267.T) and has been restructuring. It has said it is trying to sell its underperforming J. Jill clothing brand.

Talbots has also been hurt by the deepening economic crisis, which has dampened consumer confidence and led to a dramatic decline in spending on apparel. In November, Talbots reported a wider third-quarter loss as sales fell 14 percent. (Reporting by Sarah Coffey; Editing by Derek Caney)