Zale to Sell Bailey Banks & Biddle for $200 Million

U.S. jewelry retailer Zale plans to sell its Bailey Banks & Biddle brand to Finlay Fine Jewelry for $200 million. Zale expects the sale to be completed before the holiday season and noted that it was advised by Goldman Sachs & Co. on the transaction.

“Today’s announcement is consistent with our strategy to focus on the core business and increasing returns on capital. It provides an opportunity to return a substantial amount of the proceeds to shareholders,” commented Betsy Burton, CEO of Zale.

Talks of a possible sale of Bailey Banks & Biddle, Zale’s higher-end brand, have been circulating in the market for some time as it is attempting to regroup and focus its efforts on centralized marketing.

Finlay’s purchase of the brand is in line with its decision to add stores to its portfolio to counteract the weakening of department store jewelry sales, where Finlay operates store-in-store jewelry stands.