Feb 25th, Blogging Stocks reported that struggling jewelry retailer Zale Corp. (NYSE: ZLC) announced the closure of 115 stores in a drastic cost-reduction plan. The company also announced that revenue dropped nearly 18% in the second quarter.
The stores designated for closure will lock their doors for good when their leases mature. The closing stores are poor sales performers. In addition, ZLC announced that it will cut its capital spending by 65%, along with 245 jobs already cut this month. Furthermore, the jeweler plans to reduce its debt by roughly $40 million from the end of the second quarter through July (which is the end of ZLC's fiscal year). ZLC noted that the addition of Canadian and Puerto Rican assets give the company flexibility and sufficient liquidity.