Friday, February 05, 2010

"Zale wanted the vendors to write a check for what Zale had spent on the jewelry—an almost unheard of practice in the industry"

From the WSJ: "The Irving, Texas-based company is asking diamond merchants and other vendors to buy back old jewelry—including products they didn't manufacture—in exchange for a pledge of future orders, according to a company document and interviews with people familiar with the matter. Several vendors said they are reluctant to agree to the proposal."

How reluctant? "As for buying back old merchandise, a diamond vendor familiar with the situation said, 'Historically vendors don't write checks, especially to take back something you don't want and you know you'll lose money on.'"


It can't get worse, can it? "To preserve funds, Zale also has canceled much of the advertising it had planned for Valentine's Day as well as Mother's Day, said people close to the company. These are the two biggest jewelry sales holidays after Christmas."

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