Zale Under SEC Investigation

U.S. jewelry retailer Zale Corporation announced today (Monday) that the Securities and Exchange Commission (SEC) has initiated a non-public investigation in connection with various accounting matters and other issues related to the company, including accounting for extended service agreements, leases, and accrued payroll, the company said in a release this morning.

“Subpoenas issued in connection with the investigation request materials relating to these accounting matters as well as to executive compensation and severance, earnings guidance, stock trading, and the timing of certain vendor payments.

“The Company believes that its accounting complied with generally accepted accounting principles and is reviewing the matter. The Company will cooperate fully with the SEC's investigation.”

Several public jewelry companies found themselves under SEC investigation in the past few years, most notably Friedman’s and Whitehall Jewellers.