The Wall Street Journal is reporting that Zales has canceled millions of dollars of inventory orders at the end of last month. The WSJ also says the retailer is stretching payments. Zales' CFO says the company has enough cash on hand to pay suppliers.
The Irving, Texas, company in a filing with the SEC revealed sales at stores open at least a year plummeted 18.6% in November. Zale refused to accept tens of million of dollars of inventory at the end of November and is stretching payments, according to diamond suppliers familiar with the matter.
Matt Appel, Zale's chief financial officer, said while it has cancelled some orders, it has cash on hand to pay suppliers. "Barring something catastrophic, we will pay our bills," Mr. Appel said in an interview. He said there is still a lot of business to be conducted before Christmas.
"Momentum builds in the last two weeks," he said.
Barron'ssales news of Zales' order woes sent Zales' shares down 15% this morning.
The Wall Street Journal is 
