Bailey Banks & Biddle brand sold for $200M

DALLAS - Jewelry retailer Zale Corp. said today that it has agreed to sell the Bailey Banks & Biddle brand - which was founded in Philadelphia - to Finlay Fine Jewelry Corp. for about $200 million.

Zale's shares rose more than 3 percent in midday trading.

"Today's announcement is consistent with our strategy to focus on the core business and increasing returns on capital," said Zale Chief Executive Betsy Burton. She said a "substantial amount" of the proceeds would be returned to shareholders.

Bailey Banks & Biddle was founded on Chestnut Street in Philadelphia in 1832.

Finlay is based in New York City.

The sale is expected to close before the holidays, Irving-based Zale said. Zale declined to immediately provide information on the expected post-sale impact of the transaction.

The price could be adjusted at closing, the company said.

Zale operates about 2,250 stores and kiosks under brands including Zales Jewelers, Gordon's Jewelers and Piercing Pagoda.

Shares of Zale rose 75 cents, or 3.2 percent, to $24.34 in morning trading.