There are rumors in the industry that Zale Corp. has stopped paying some of its vendors. Zale, not surprisingly, disagrees.
Spokesman David Sternblitz notes that the company now has certain challenges, since most of its vendors cannot get credit insurance because of restrictions from their financial institutions, so they are selling on C.O.D. So Zale has offered many of its suppliers “accelerated payments.”
The different financing arrangements “has made a systematic process more manual and required us to more tightly manage the timing of our outflows with inflows,” Sternblitz says.