Irving, Texas According to a securities filing on Tuesday, Zale Corp. has made a $5.3 million partial payment to Citibank on a merchant services agreement to provide credit-card services to the jewelry retailer.
The payment came after Citibank notified Zale that it would terminate the agreement in 180 days.
Zale Corp. said in the filing its agreement to negotiate a new agreement with the lender expired on June 16, but the two companies continue to negotiate a deal.
In the same securities filing, Zale said Citibank had notified the company saying it would terminate the agreement within 180 days if Zale does not pay $1.1 million before June 16. If all payments are made by Zale Corp. the agreement with Citibank will extend to its original March 2011 expiration date.