NEW YORK (
is finding a new way to raise cash -- by asking its vendors to foot the bill, according to reports.
The Wall Street Journal
, citing sources familiar with the matter, reported that the jewelry retailer is asking diamond merchants and other vendors to buy back old merchandise in exchange for a promise of future orders.
Zale has been facing some hard times. In January, top executives, including its CEO, chief stores officer and chief merchandising officer, all resigned.
As the company looks for replacements, Zale President Theo Killiom will serve as interim CEO, while Gil Hollander, executive vice president and chief sourcing and supply chain officer, will also assume the role of chief merchandising officer.
The resignations came on the heels of a 12% plunge in sales in December, as the jeweler was forced to cancel orders ahead of the holiday season.
Zale was also the center of a Securities & Exchange investigation into financial irregularities in 2009.
Shares of Zale plunged 9% to close at $2.05 on Thursday.
-- Reported by Jeanine Poggi in New York.
Follow TheStreet.com on
and become a fan on
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.