OTHER NEWS - Jan. 3, 1992
From Times Staff and Wire Reports
Creditors File to Place Zale Into Chapter 11: A group of Zale Corp.’s bondholders has filed a petition to force the struggling jeweler into bankruptcy court and work out a plan to reorganize its $1-billion debt, the chairman of the group said. The creditors filed the request on New Year’s Day, two days after the giant jewelry company announced plans to close 400 of its 2,000 stores and to delay payments to debt holders and suppliers. The bankruptcy action was expected for a month, since the Dallas-based company missed a $52-million interest payment that was due Dec. 2. The payment fell into default at the end of the year.
