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                                                                      EXHIBIT 21

                           SUBSIDIARIES OF THE COMPANY


The following companies are subsidiaries to Zale Corporation:

         Zale Delaware, Inc.
         Diamond Funding Corp.  (iv)
         Zale Acquisition Corporation  (iv)
         Jewel Recovery, Inc.
         JHC Holding Corporation (i)  (iv)
         Zale Holding Corporation  (ii)
         ZHCL Corporation  (iii)  (iv)

The following companies are subsidiaries of Zale Delaware, Inc.:

         Zale Puerto Rico, Inc.
         Dobbins Jewelers, Inc.
         Jewelers Financial Services, Inc.
         Zale Life Insurance Company
         Zale Indemnity Company
         Diamond Guaranty Insurance Company (iv)
         Jewel Re-Insurance Ltd.
         Zale Employees Child Care Association, Inc.
         Jewelers Credit Corporation
         Jewelers National Bank

  (i)    Jewelers Holding Corporation, former parent company of Zale Holding
         Corporation, merged into JHC Holding Corporation, which was formed on
         July 30, 1993 (the "Effective Date") for purposes of the merger.

 (ii)    Former parent company of Zale Corporation and currently a subsidiary of
         JHC Holding Corporation.

 (iii)   Former sister company of Zale Corporation and currently a subsidiary of
         JHC Holding Corporation.

Through reorganization, all of these companies became subsidiaries of Zale
Corporation on the Effective Date.

 (iv)    Currently an inactive corporation.