Golden Gate to Buy Stake in Zales

NEW YORK (Reuters) – U.S. jeweler Zale Corp (ZLC.N) plans to sell a minority stake to Golden Gate Capital Corp, Bloomberg News reported on its website citing two people familiar with the decision.

Golden Gate’s offer was chosen over proposals from Centerbridge Capital Partners LLC and TPG, the people — who declined to be identified before an announcement — told Bloomberg News.

Zale has been struggling with sharp sales declines.

While the companies will enter into exclusive talks, a transaction could still fall apart, Bloomberg said citing the people.

Zale treasurer Stephen Massanelli declined comment. Golden Gate could not be immediately reached for comment.

Zale was seeking about $100 million to $150 million for the stake, the news service had reported earlier this month. (Reporting by Dhanya Skariachan; editing by Carol Bishopric)