Breeden raises stake in Zale, again
January 15, 2008

New York—Activist investor Breeden Capital Management LLC’s stake in jewelry chain Zale Corp. continues to grow, a Securities and Exchange Commission (SEC) filing on Tuesday shows.

The Greenwich, Conn.-based investment fund, controlled by former U.S. SEC Chairman Richard Breeden, reported owning about 7.9 million shares, or a 17.7 percent stake in the company, up from 15.9 percent.

According to The Associated Press, this is the fourth time this month Breeden has raised its stake in Zale.

Breeden previously has said it plans to pursue discussions with Zale management, the board and other shareholders about the company’s strategy and what steps the company can take to increase shareholder value.

In its latest earnings call, Zale reported a 9 percent decrease in same-store sales for November and December 2007. Total revenues for the two-month period were $723 million, compared with $804 million during the same period in 2006, a 10.1 percent decline.

The company also is under new management, with former The Children’s Place Retail Stores President Neal Goldberg taking the helm after President and CEO Betsy Burton stepped down in December.

Breeden himself has been noted in recent years for shaking things up at such large companies as H and R Block Inc. and Applebee’s.

Editor’s note: For earlier developments in this story, see Breeden ups stake in Zale.