NEW YORK ( TheStreet) -- 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. Follow TheStreet.com on Twitter and become a fan on Facebook.