Investor raises stake in Zale
January 03, 2008

Washington, D.C.?An activist investor has nearly doubled his stake in Zale Corp., just eight days after the company named a new CEO.

Richard Breeden, former chairman of the U.S. Securities and Exchange Commission, bought a total of 2.16 million shares of Zale stock between Nov. 8 and Dec. 28 at prices ranging from $15.60 to $19.18 a share.

That raises Breeden’s interest in the company from 7.7 percent to 13.3 percent.

Breeden first expressed interest in investing in Zale in September because, he said, he felt the stock was undervalued.

Breeden’s previous accomplishments include winning three seats on the board and a chairmanship at H and R Block Inc. in September. In November, H and R Block Chief Executive Mark Ernst resigned.

Breeden also fought with the management of Applebee’s International Inc. and was able to win seats on the board and strategy committee.

Breeden’s Zale-buying frenzy, done through his Greenwich, Conn.-based company Breeden Capital Management LLC, comes on the heels of the Dec. 20 announcement that Neal Goldberg, a former president of The Children’s Place Retail Stores Inc., would be replacing Betsy Burton at the company’s helm.

Burton lead the Irving, Texas-based chain jeweler since 2006 during which time the company sold off its high-end Bailey Banks and Biddle chain.

Goldberg has 27 years of experience in the retail industry, including senior roles at Macy’s, Victoria’s Secret and Gap Inc.

Editor’s note: For related news, see Shake-up at the top for Zale.