Jeweler Zales puts 12 NYC leases up for grabs

New York /
Mar.March 04, 2010 09:13 AM

Jewelry retailer Zales wants to sell the leases on up to 12 of its New York City stores, including those in prime locations like Fifth Avenue and Herald Square, in an attempt to raise capital, Reuters reported. The jeweler, which has been plagued by declining sales and market share, is also looking to unload leases on two stores each in the Bronx, Brooklyn and Queens, a listing on RCS Real Estate Advisors showed. Whether the jeweler will leave the stores or merely reduce its obligations through the sales was unclear. Zales, which has only $67 million left on a $600 million line of credit that requires $50 million in reserves, hired RCS last year to help restructure its lease portfolio and reduce costs. Last week, the company said it expects to have its finances back in order by May. The source of Zales’ new capital and financial stability could wind up being private equity firm Apollo Management, which is reportedly interested in taking on a stake. Zale closed 187 stores in 2009, but CEO Theo Killion said last week he was not expecting a “significant” number of store closings this year. [Reuters via NYT]


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Latest fintech unicorn offers credit-score boost to renters
Latest fintech unicorn offers credit-score boost to renters
Latest fintech unicorn offers credit-score boost to renters
TRD Brand Studio: Your business, powered by The Real Deal
TRD Brand Studio: Your business, powered by The Real Deal
TRD Brand Studio: Your business, powered by The Real Deal
Marc Holliday, chairman and CEO, SL Green Realty Corp. (SL Green Realty Corp.)
Real estate bragging rights reach new heights
Real estate bragging rights reach new heights
Jason Rabin and 70 Cobb Road, Water Mill, NY (Google Maps, LinkedIn)
Southampton compound sells for $118.5M
Southampton compound sells for $118.5M
Jonathon Yormak,founder, managing principal, East End Capital; and map of 48-02 48th Avenue in Sunnyside Queens (East End Capital, Google Maps)
East End Capital bets on Sunnyside industrial
East End Capital bets on Sunnyside industrial
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...