After it succeeded in easing the immediate cash burden, Zale plans to focus on in-store and marketing initiatives to grow sales. It is possibly seeking a new CEO too.

Zale found a life line in the form of $150 million loan from Golden Gate Capital (GGC), a $650 million bank facility and a new branded credit card program for its Canadian stores. The embattled jewelry retailer announced the news on Monday after the end of the business day.

According to the release, the GGC loan, which matures in five years, will also give the fund two representatives on Zale’s board of directors and receives warrants for 25 percent equity stake on fully diluted basis.

GGC will also have the right to purchase 11.1 million common stock shares at $2 per share, 6.4 million shares immediately upon closing of the agreement and 4.7 million shares subject to shareholder approval.

The new bank credit facility consists of two tranches. The extended tranche includes commitments totaling $530 million and matures on April 30, 2014. A non-extended tranche includes commitments totaling $120 million matures on August 11, 2011.

The new bank facility amends and extends Zale’s existing asset-backed credit facility.

Of no less importance is the agreement with TD Financing Services to offer a proprietary credit card program starting from July 1. The program replaces the company’s agreement with Citi Cards Canada that expires on June 30.

The new Canadian card program is for a term of 5 years and will be used at Peoples Jewellers and Mappins Jewellers. Zale is negotiating with Citibank (South Dakota), on replacing the current U.S. proprietary credit card program.

“The company believes that these agreements will allow it to complete the restructuring of its retail network, continue the expansion of its internet sales efforts and provide the working capital necessary to execute its merchandising and marketing initiatives,” the company said following the announcement.

The new board members are Stefan Kaluzny and Peter Morrow. Both focus on several sectors, including multi-channel retail and consumer products. They are replacing Thomas C. Shull and David M. Szymanski that have resigned from the board. In addition, Zale chairman John B. Lowe, Jr. will not run for reelection to the board when his current term as a director expires.