Zale Hires Turnaround Investment Firm Peter J. Solomon
February 10, 10
 Zale is seeking advice from investment firm, |
Zale Corp. announced that it has hired Peter J. Solomon Company, an independent investment banking advisory firm to the retail industry, to advise the embattled jewelry retailer. Zale did not provide details on what services it will solicit from the investment firm, which provides services in mergers and acquisitions, restructurings and financing advisory.
In a story last week, The Wall Street Journal had speculated that Zale would consider retaining the firm as a financial advisor at their board meeting this month. Zale, which has posted losses for in nearly every quarter over the past 2 years, has attracted the attention of potential investors, according to the newspaper.
Zale’s’ top executive team, including former CEO Neal Goldberg, recently left the company after it posted sales losses for the 2009 holiday season. The departures have left a leadership vacuum that is yet to be filled. Most recently, Zale asked its jewelry suppliers, diamond traders and other vendors to buy back old jewelry for cash.
The retailer has canceled much of the advertising it had planned for Valentine's Day as well as Mother's Day in what is apparently a cost saving measure.