Zale's Major Investor Flees
NEW YORK (
) -- A major investor in
Zale
(ZLC)
has shed most of his shares in the struggling jeweler, according to a Securities and Exchange Commission filing.
Franklin Resources slashed his holdings to 4.7%, as of Feb. 28, from 16.4% late last year. Before selling off the shares, Franklin was the second largest investor behind
Breeden Capital Management
,
Reuters
reported.
Currently, Franklin owns 1.5 million shares, down 71% from 5.3 million shares as of Dec. 31.
Zale stock, in reponse, is soaring 15.8% to $3.37 in afternoon trading.
Zale has been struggling with waning sales , but managed to report better-than-expected fourth-quarter earnings last month with the help from a tax benefit.
Last week, reports surfaced that the company may be looking into selling up to a dozen of its New York leases.
Apollo Management
has also been rumored to be eying a stake in the company.
-- Reported by Jeanine Poggi in New York.
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