Major Zale Shareholder Loses Faith, Sells Holding

Franklin Resources Inc, which held a 16.4 percent stake in Zale Corp. at the end of 2009, has sold the majority of its holdings in the troubled jewelry company by reducing its holding to 4.7 percent, according to a Tuesday filing with the U.S. Securities and Exchange Commission (SEC).

Zale has been suffering from decreasing sales and continued losses in the past couple of years and is plagued with frequent top executive changes.

Same-store sales during the all important holiday season fell 12 percent.