Fossil Group creditors agree to $150m debt restructuring
Fossil Group has successfully negotiated a $150 million debt restructuring plan with its creditors, who approved the agreement during a meeting in London. This plan allows the company to replace its existing bonds with longer-dated notes and raise an additional $32.5 million in funds, avoiding the risk of administration. The restructuring was overwhelmingly supported, with only one creditor voting against it. The alternative would have involved filing for Chapter 11 and potentially winding up the business, which would have resulted in lower recovery rates for noteholders. The company reported a sales figure of $1.15 billion in 2024, along with an operating loss of $104 million, but has shown signs of improvement with a recent turnaround plan. In the second quarter of 2025, Fossil achieved a turnover of $220 million, which, although 15% lower than the previous year, yielded an operating profit of $8 million. As Fossil aims to strengthen its market position, it is focusing on brand-building initiatives, including a global campaign featuring celebrity ambassador Nick Jonas, while preparing for the crucial holiday trading season.
