(Reuters) – U.S. jeweler Zale Corp (ZLC.N), which expected to have secured funds to steady its finances by late May, is considering a financing proposal from Sun Capital Partners Inc, the Wall Street Journal reported.
Sun Capital has submitted a proposal to invest between $50 million and $100 million in Zale’s preferred stock that could give the private equity firm a majority stake in the jeweler, the paper, said citing people with knowledge of the deal.
The Journal said that Sun Capital has also agreed to provide a bridge loan that includes a $600 million revolving credit facility.
The Dallas-based jeweler has lost money in seven of the last eight quarters and has hired turnaround firm Peter J. Solomon to help it maximise its financial flexibility.
Last month another U.S. private equity firm Apollo Management [APOLO.UL] was looking to pick up a stake in the company.
Zale and Sun Capital could not be immediately reached for comment by Reuters outside of regular U.S. business hours.
(Reporting by Anuradha Ramanathan in Bangalore; Editing by Lincoln Feast)