Nov 12 Zale Corp on Monday said that Genesis Financial Solutions will provide financing to some of its customers with low credit scores in a bid to avoid losing sales to customers turned down by Citibank, which issues the jeweler's private label credit cards.
About 35 percent of Zale's U.S. sales were financed by customer credit last fiscal year, according to the company's annual report. Citibank is part of Citigroup Inc
The financing option from Genesis became available last month, and is offered at the company's Zales, Zales Outlet and Gordon's chains.
Genesis is a consumer finance company that offers financing to customers with near-prime and non-prime credit. Zale will offer a revolving line of credit via Genesis to select customers and offer similar repayment terms.
The news was released after Zale shares closed the day up 9.5 percent at $7.50.