US jewelry chain Zale turns to vendors to raise cash -WSJ

Feb 4 (BestGrowthStock) – Struggling U.S. jewelry chain Zale Corp
(ZLC.N: ) is seeking to sell some of its inventory to its vendors
to raise cash, the Wall Street Journal said, citing a company
document and people familiar with the matter.

Zale is asking diamond merchants and other reluctant
vendors to buy back old jewelry in exchange for a pledge of
future orders, the paper said.

The Dallas-based chain has liquidated inventory in the past
year to combat sharply weaker sales. Its long-term debt rose
20.8 percent in the first quarter ended Oct. 31, 2009 to $465.5
million from a year earlier when it was $368.5 million,
burdening it with large interest payments. [ID:nN13140808]

The weak market for some segments of jewelry claimed a
number of victims last year. Finlay Enterprises Inc filed for
bankruptcy protection in August, while regional luxury retailer
Fortunoff filed for Chapter 11 in February.

Zale could not be immediately reached for comment by
Reuters outside of regular U.S. business hours.

Stock Investing

(Reporting by Sakthi Prasad in Bangalore; Editing by
Muralikumar Anantharaman)

US jewelry chain Zale turns to vendors to raise cash -WSJ