Zales
Zale finally finds buyer
Posted April 27, 2010 |
Zale Corp has reportedly found a suitor to buy a stake in the business – potentially ending months of bankruptcy rumours for the jeweller.
Bloomberg reports Golden Gate Capital will buy a stake in the struggling jewellery chain, citing two anonymous sources.
Golden Gate were previously identified as one of three potential buyers being considered by Zale, the others being Centerbridge Partners and TPG.
Bloomberg’s sources said the companies are now in exclusive talks, although a transaction has not been finalised.
Zale Corp, the third-largest jeweller in the US, is reportedly seeking between $100 million and $150 million from Golden Gate for a minority stake in the business.
The company has been in the news since it sold leases on 12 of its stores in prime locations in a bid to shore-up its finances.
In a further sign of Zale’s impending doom, the company’s largest shareholder sold his stake in the company last month.
After slashing advertising budgets and overhauling its finances, Zale Corp appears to finally be back on track.
The company reported its first quarterly profit in two years in February, after revenues dropped 17 per cent last year.
Zale Corp’s share price has climbed 25 per cent this year.
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