Report: Zale considering financing proposal

Dallas Zale Corp. is reportedly considering a financing deal from Sun Capital Partners that would put between $50 million and $100 million in Zale’s preferred stock.

According to a report by the Wall Street Journal, which cited knowledgeable sources, Sun Capital’s proposal could give the private equity firm a majority stake in the jeweler.

WSJ said that Sun Capital has also agreed to provide a bridge loan that includes a $600 million revolving credit facility.

Zale has lost money in seven of the last eight quarters and has hired turnaround firm Peter J. Solomon to help it maximize its financial flexibility.