Shares of Signet Jewelers (SIG) were rocked Thursday following a bearish report in Jim Grant's Investment Newsletter. The company operates mall-based jewelers such as Kay's Jewelers, Zale's, and Piercing Pagoda. At the market open, shares fell as much as 12 percent before being halted. By midday, shares recouped some of their losses and were down approximately seven percent. The report raises questions about the company's business practices, most notably, the credit worthiness of its customers. According to the report, the average credit score Signet's customer is 662, which is only marginally better than the 640 threshold for subprime borrowers. The report also mentions an increase is personal bankruptcy filings that list Signet or one of its companies as a creditor.
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