Zale Considers Sale of Piercing Pagoda
Zale is considering selling the business in order to focus on its fine jewelry operations, Bloomberg News said without naming its sources.
The unit had revenue of more than $226 million in the year ended July 31 and is profitable. Buyout companies including Apollo Global Management are interested in a possible deal.
Zale bough Piercing Pagoda 10 years ago. The business began as an ear-piercing booth in Whitehall, Pennsylvania more than 40 years ago. It now has more than 650 jewelry kiosks in U.S. malls.
The unit saw its revenue drop 9.3% in the last two years, compared with a decline of one-third in the Zales and Gordon's businesses.