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)