Zale Fights To Stay Out Of Hock

Stung by poor Christmas sales, mounting losses, and heavy debt, Zale has resolved to remake itself in 1992. It's shutting 400 of its 2,000 retail jewelry stores and slimming down its headquarters. The world's largest retail jewelry chain also has halted payments to banks, bondholders, and suppliers. The move could force Zale into bankruptcy, as at least one bondholder has threatened to file an involuntary petition. Zale already is late on a $52 million interest payment.

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