Zale Corp. has dropped troubled Arthur Andersen LLP as its auditor.
According to a company announcement, Zale’s Board of Directors appointed KPMG LLP on June 6 as the company’s independent auditor for fiscal 2002.
During its tenure as Zale Corp.’s outside auditor, “Arthur Andersen provided many years of quality service and has demonstrated a high standard of professionalism,” said Sue E. Grove, Zale executive vice president and chief financial officer. “However, after a thorough review process, the board concluded that KPMG LLP would bring the best combination of talent and experience to the auditing effort.”
KPMG is a major international accounting and consulting firm, with member firms in 152 countries. Arthur Andersen LLP, a well-known international accounting firm, has lost a number of clients in recent months due to its connection to the Enron bankruptcy scandal and the U.S. government’s legal action against the company.
Zale Corporation is North America’s largest specialty retailer of fine jewelry operating more than 2,300 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation’s business units include Zales Jewelers, Zales Outlet, Zale Direct at www.zales.com, Gordon’s Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.