Citibank and Zale Corp. agreed to extend the deadline for Zale to pay the $6 million it owes Citibank to May 31, according to the U.S. Securities and Exchange Commission.

Last year, Zale lost its agreement with Citibank to finance its credit cards. The “Merchant Service Agreement” was to expire in 2011, but Zale received notice that they had to repay Citibank by April 1 for failure to meet the required volume of credit sales. That deadline was extended to April 30.

Zale and Citibank have entered into negotiations to replace the agreement, and in connection with the most recent extension Zale agreed to negotiate exclusively with Citibank through May 31.

JCK