Where, exactly, is that town? I can't find it.
Yes, Tearn turned up in Tailor after helping Rud’s family, and you received a new quest: to free the three captains. But there is some bug at this stage, because as before, after releasing the captains you don’t get another quest.
Edited: I replayed the sequence from another save file, then it worked. So something must have affected the save file from which I got stuck.