Zale Corp. announced it has received notice from Citibank that it will terminate its agreement to finance its credit cards for its Canadian subsidiary, effective June 30.

The agreement also enables Zale to write credit insurance for its Canadian customers.

Zale says it has initiated discussions with other parties with respect to new customer financing arrangements to replace the agreement when it expires.

Customers use the Citibank financing agreements to pay for approximately 25 percent of purchases in Canada, Zale has said.

Last week, Citibank gave Zale another month to determine whether it would continue to use Citibank to finance its U.S. cards, which would incur a $6 million penalty.

JCK