Zale Must Restate Financials

In another blow to troubled Zale Corp., the company said its financial statements from fiscal years 2008 and 2009 contain errors and are no longer reliable.

Among those errors: Some $41 million in prepaid advertising costs should have been recorded as expenses. In addition, it needs to aggregate approximately $9 million on a pretax basis and record a $4 million charge related to federal income taxes to fiscal 2008. The company will delay filing its 2009 annual statement until Oct. 29th.

Zale’s chief financial officer resigned in January.