Zale Closes 191 Stores

Zale Corporation announced it had closed a total of 191 underperforming stores during the fourth quarter ending July 31, 2009. 160 of the stores were retail and 31 were kiosks. The closed stores had a negative contribution to the company valued at approximately $14 million.

In addition, the company renegotiated rental agreements for an undisclosed number of store locations and reduced rental payments for them.

Totaled, Zale is to record a $50 million pre-tax charge during the quarter to cover all the costs relating to the closures.

This amount includes charges associated with the contingent liabilities relating to all 45 Bailey, Banks & Biddle locations. Finlay Enterprises - which bought the jewelry chain in 2007 - declared bankruptcy on Wednesday.

Following the closures, Zale Corporation operates 1,931 retail outlets operating under various names such as Zales Jewelers, Gordon's Jewelers and Piercing Pagoda.