Shares of jewelry retailer Zale Corp. tumbled almost 10% on Monday after the company said the Securities and Exchange Commission had started a probe into its accounting, executive pay and other matters.
The SEC is looking into the company's accounting for extended service agreements, leases and accrued payroll as well as other matters, Zale said.
The company's stock slumped $2.64 to $25.16.
The SEC has subpoenaed materials related to the accounting issues as well as to executive pay and severance, earnings forecasts and the timing of certain vendor payments, Zale said.
In January, then-Chief Executive Mary L. Forte received a severance package worth $8.5 million when she resigned under pressure from the Zale board.