Troubled jewelry chain Zale Corp. has agreed to payments and benefits for its ousted chief executive officer and chief stores officer.
This story first appeared in the February 15, 2010 issue of WWD. Subscribe Today.
The Dallas-based firm disclosed in a regulatory filing with the Securities and Exchange Commission that Neal Goldberg, who served as ceo for two years before his departure on Jan. 13, immediately will receive a lump-sum payment of $500,000 in addition to a single payment of $100,000 in August. Vested stock options will remain exercisable for 90 days after his exit from the company, and Zale will continue to cover his medical insurance for one year if he isn’t eligible for insurance from a new employer.
William Acevedo, former chief stores officer of the company, will receive a lump-sum payment of $337,500 as well as one year of medical insurance coverage.
In addition, WWD has learned that David Sternblitz, vice president and treasurer, has left the company. Steve Massanelli, senior vice president, will assume his responsibilities as treasurer. Matt Appel continues as executive vice president and chief financial officer.
In the January shake-up, which ended Goldberg and Acevedo’s tenures, Mary Kwan, executive vice president and chief merchandising officer, departed after a 17-month tenure, and Theo Killion, president of the Zale, took the additional post of interim ceo.
Details of Kwan’s separation weren’t included in the SEC filing because she wasn’t an executive officer of the firm, a spokesman said.
Last week, Zale said it had hired investment banking firm Peter J. Solomon Co. to advise it on restructuring options. The company, which had $24 million in cash and $465.5 million in long-term debt on its balance sheet as of Oct. 31, reported a net loss of $57.6 million in its fiscal first quarter and saw its same-store sales contract 12 percent during November and December.