SEC to check Zale's books
Shares of jewelry retailer Zale Corp. plunged nearly 26 percent after the company revealed that the Securities and Exchange Commission will investigate its accounting after Zale restated its 2008 and 2009 earnings.
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#1 Nov 3, 2009
Zales did everything it could to entice a purchaser for its Bailey Banks and Biddle division, including guaranteeing the leases, should Baileys go out of business. Who would sell a division but still remain financially liable for potentially $67 million worth of leases for a comany you no longer own? Well Zales did it and failed to report the potential liability in their 2007 and 2008 Q-10 reports. Then, Finlay, the corporation who purchased Baileys liquidates Baileys and guess what...Zales has some leases to pay off and some major "splainin' to do to its shareholders who were never told of the bargain in the first place. And now with more transparency from the SEC, it explains why Zales postponed twice their 2009 fiscal earnings statement until late October. They claimed that they hired a new accounting firm and that there was a "learning curve" for these new accountants so that's why the annual report was taking so long. A Zales employee even stated something like "look there's a learning curve...they're still figuring out where the coffee maker is." Do you really expect us to believe that one?
#2 Jan 3, 2010
If Zales is getting hit by a potential $67 million liability from BBB leases, and they are facing a lawsuit from it's share holders that lost a fortune, and they just experienced an 8th straight years of losses, and they have fired every comapny leader on almost annual basis then what does 2010 hold for ZALES? I never understood the internal competition created by having a Zales, Gordon's, and often a Zales Outlet always in locations that are very close ot each other and directly compete for sales. How about they shut down 2/3's of the locations and strengthen their base then start over again. If you have the stock I hope you have sold it...
Since: Oct 09
#3 Jan 11, 2010
Not too bad, but your view is so unique. I like it very much.
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