Zale Corp. reported stronger-than-expected profit in its fiscal second quarter, performance that could support the struggling jeweler attract investment to shore up its business.

Citigroup Inc. has informed Zale Corp. that the bank is not looking to renew the jeweler's private-label credit card agreement once its current term expires, leaving Zale with no option but to either strike a new accord with Citi or look for another financial services company to tie up with.

Zale Corporation Inc., which operates as a specialty retailer of fine jewelry, on Wednesday revealed its plans to shut down 115 underperforming stores and layoff 245 jobs during the year.

The company intends to save about $34 million in expenses through fiscal 2010 by closing about 115 underperforming stores, which will be closed as leases mature.