Close

Zale Corp. (ZLC) Shares Trade Lower on Citi Debt Extension, Strategic Alternative Exploration

March 30, 2010 1:17 PM EDT
Shares of Zale Corp. (NYSE: ZLC) are trading lower today as the company said that the company would have their Merchant Services Agreement, dated July 10, 2000, between Citibank and two of the Company’s wholly-owned subsidiaries, in 180 days, unless the Company paid Citibank approximately $6 million on or before April 1, 2010 for a shortfall to the minimum volume of credit sales as set forth in the Agreement. However, the two companies have extended the due date on that payment until April 30, 2010.

Shares of Zale are trading 11.73% lower today, to $2.86.

The company also said that it is exploring available alternatives to its deal with Citi. Zale hired turnaround expert Peter J. Soloman to help find investors. The company, last week, also said that it might tap into Sun Capital Partners for financing.

You May Also Be Interested In





Related Categories

Insiders' Blog, Trader Talk

Related Entities

Sun Capital Partners, Citi