Financial Reporting

Save E-mail Print Most Popular RSS Reprints

Zale shutters 118 stores

August 07, 2009

Dallas--Zale Corp. has announced the closure of 118 underperforming stores during the fiscal fourth-quarter ended July 31, 2009, three more than the 115 the company anticipated it would close, according to a company spokesperson.

In a release issued on Thursday by the Dallas-based company, Zale stated that including the 118 closures announced this week, the retailer has shuttered a total of 191 underperforming stores in calendar year 2009: 160 retail stores and 31 kiosks.

These 191 locations cost Zale $14 million in the 12 months preceding their closure and carried $56 million in inventory.

In addition, Zale announced on Thursday that it has reached a deal with the landlords for 34 of the 45 Bailey Banks and Biddle leases for which the company is liable.

Zale's Bailey Banks and Biddle lease liability stems from a deal made in 2007, when Zale sold the upscale, standalone chain to Finlay Enterprises Inc., which filed for Chapter 11 bankruptcy protection late Wednesday.

There is a total of $62 million left on all 45 leases, but a Zale spokesman said between the deal already reached with landlords for the 34 locations and negotiations with the remaining 11, Zale expects paying $23 million to settle all 45 leases.

Following the recent closing of these 118 stores, Zale now operates 1,931 retail locations under the brands Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.

It ranks as the No. 1 largest jewelry retailer in North America by store count and recorded sales of $2.1 billion in 2008, according to National Jeweler's 2009 "The State of the Majors" report.
Save E-mail Print Most Popular RSS Reprints
Post a Comment
* Required field
* Author:
* Comment:
 

Financial Reporting

Zale slapped with shareholder class-action suit

A shareholders' class-action lawsuit has been filed against Zale Corp., its chief executive officer and three former executives, claiming the Irving, Texas-based, 1,931-store chain deliberately deceived investors. Read More

Birks and Mayors mid-year sales down 19 percent
3Q sales down 4 percent at ShopNBC
Retail sales remain flat in October
Richemont's six-month sales fall 15 percent
More Financial Reporting News

More Like This

Design Portfolio

advertisement

Video

Small multi video player located on right rail of NJN site

advertisement

Sponsored by:

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.
Newsletters
Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.
Reader Connect
ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.
Jewelry Yellow Pages
Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.
Classifieds
Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.
NJN Customer Connect
CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.

advertisement