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Zale Corp. to cut 200 positions, close 105 stores in 2008 for annual savings of $65M

Zale Corp. to cut 200 positions, close 105 stores in 2008 for annual savings of $65M

Jewelry retailer Zale Corp. says it will cut more than 200 positions and close 105 stores in 2008, in an effort to save more than $65 million (euro43 million) a year.
The company says it will eliminate 140 filled and 85 open positions, or 20 percent of the staff at its headquarters in Irving, Texas. Most of the $4 million (euro2.6 million) in severance-related and other costs from the initiative will be recorded in the company's fiscal third quarter ending April 30.
Additionally, the company will reduce capital spending from an expected $85 million (euro56.5 million) in 2008 to $45 million (euro29.91 million) in fiscal 2009, and reduce inventory by $100 million (euro66.47 million).
Zale shares jumped $2, or 11.2 percent, to $19.93 in midday trading.


Updated : 2021-04-19 20:16 GMT+08:00