Citibank Ends Zale Private Credit Card Financing

Zale has been informed by Citibank that the bank will not renew the Merchant Services Agreement that provides financing for Zale’s U.S. customers to purchase merchandise through private label credit cards.

According to the Tuesday announcement, the agreement will expire in March 2011.

Zale, which is reportedly in restructuring discussions after cancelling purchase orders in the height of the holiday season, said it has initiated discussions with Citibank and others to find a replacement for their customer financing arrangements.