Report: Citibank pulling out of credit-card deal with Zale

New York City Banking giant Citibank has notified Zale Corp. that it won't renew its merchant services agreement with the jewelry retailer, according to the Dallas Business Journal.

This means Zale Corp. won't receive financing from Citibank to provide customers with private-label credit cards, after the current agreement between the two companies ends in March 2011.

Zale Corp. confirmed Citibank’s intentions in a Securities and Exchange Commission filing on Thursday. Zale Corp. said in the same filing it will seek other arrangements to finance the credit cards after its Citibank contract expires.