Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
Zale shareholders approve merger with Signet
The country’s two biggest specialty jewelers now are one. After weeks of defending the deal, Zale Corp. notched a huge victory Thursday when its shareholders voted in favor of combining the retailer with rival Signet Jewelers Ltd.
Dallas--The country’s two biggest specialty jewelers now are one.
After weeks of defending the deal, Zale Corp. notched a huge victory Thursday when its shareholders voted in favor of combining the retailer with rival Signet Jewelers Ltd.
The vote took place Thursday morning at Zale’s headquarters in Dallas in a meeting The Dallas Morning News described as “sparsely attended.” Zale had not issued a statement on the vote as of press time Thursday.
The merger, a deal valued at $1.4 billion, will create a chain of more than 3,600 stores in the United States, United Kingdom and Canada, and bring some of the industry’s most well-known chain jewelers under the same umbrella of ownership: across-the-mall-hall rivals Kay Jewelers and Zales along with Piercing Pagoda and Jared the Galleria of Jewelry.
Though there were those that claimed the deal under-valued Zale, jewelry and diamond industry analyst Ken Gassman, who spent years on Wall Street as a securities analyst, said in the end he was not surprised that Zale’s shareholders approved it.
“There were enough shareholders who understand that if Zale is to survive, a merger with Signet is its best hope,” Gassman said Thursday.
New York-based hedge fund TIG Advisors, which owns a 9.5 percent stake in Zale Corp., had been pushing shareholders to vote against the acquisition, claiming that the retailer’s turnaround plan was working and that Zale was taking too low of a per-share price in a deal tainted by conflicts of interest.
Zale countered with a number of statements claiming TIG Advisors was disseminating inaccurate information about the deal, calling those involved in the fund “short-term opportunists” who were ignoring the risks not merging would place on long-term stockholders.
RELATED CONTENT: Zale ‘sets the record straight’ on Signet deal
Just before the vote, three shareholder proxy services that make recommendations on deals of this size weighed in on the proposed marriage of the two long-time rivals.
Two of the firms, Institutional Shareholder Services Inc. and Egan-Jones Proxy Services, recommended Zale shareholders vote for the merger while Glass Lewis & Co. said shareholders should vote against it.
The Latest
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Despite the rising prices, consumers continue to seek out the precious metal.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Sponsored by the Las Vegas Antique Jewelry and Watch Show
Tobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
Stars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
The branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
The six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
The highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
The “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.