Zale Gets Permanent CEO; Breeden Resigns from Board

Theo Killion was named chief executive officer of Zale Corp. and a member of its board, the
company announced last week.

Killion, the company’s former president, had been
serving as interim CEO following the departure of Neal Goldberg in January.

“Theo has successfully led Zale through the
critical initial stages of our operational and financial turnaround, showing
equal skill in working with vendors, customers, shareholders, and
employees,” said John B. Lowe Jr., Zale’s chairman. 

Killion joined Zale Corp. in January 2008 as
executive vice president and was appointed president in August 2008.
Previously, he held senior management positions at Tommy Hilfiger, Limited
Brands, Macy’s East, and the Home Shopping Network.

In addition, “activist investor” Richard C. Breeden
and associate James M. Cotter resigned from the company’s board, having served
since January 2008. Breeden Capital continues to be Zale’s largest shareholder.

Joining the board is Kenneth B. Gilman, a retail
industry veteran. Gilman’s experience includes 25 years at Limited Brands,
where he served as chief financial officer and chief administrative
officer.