UK court approves Fossil Group's debt restructuring plan

RICHARDSON, Texas - Fossil Group, Inc. (NASDAQ:FOSL) announced Monday that the High Court of Justice of England and Wales has sanctioned its restructuring plan for the company's 7.00% Senior Notes due 2026. The fashion accessories company, currently carrying a total debt burden of $324.39 million and a concerning debt-to-equity ratio of 2.16, has been working to address its financial challenges.

The court-approved plan will result in the complete cancellation of the existing notes and the issuance of new secured senior notes: 9.500% First-Out First Lien Secured Senior Notes due 2029 and 7.500% Second-Out Second Lien Secured Senior Notes due 2029. This restructuring comes as InvestingPro data shows Fossil is quickly burning through cash, with negative free cash flow of $47.65 million in the last twelve months.

"The High Court's decision to sanction the Restructuring Plan is an important step as we look to address Fossil's upcoming debt maturity and provide additional liquidity to support our turnaround plan," said Franco Fogliato, CEO of Fossil Group. The turnaround efforts come amid challenging financial conditions, with the company's revenue declining 15.35% to $1.08 billion in the last twelve months.

The restructuring is being implemented through Fossil's subsidiary, Fossil (UK) Global Services Ltd, under Part 26A of the UK Companies Act 2006.

Fossil Group specializes in consumer fashion accessories, including watches, jewelry, handbags, and leather goods across owned brands such as Fossil, Michele, Relic, Skagen, and Zodiac, as well as licensed brands.

The company has made the terms of the restructuring plan and related explanatory statement available through a dedicated website managed by Epiq Corporate Restructuring, LLC, which is serving as the information agent for the process. Documentation is also accessible through the SEC's EDGAR system.

The announcement follows a series of previous disclosures about the proposed notes restructuring dating back to August 13, 2025.

This information is based on a press release statement from Fossil Group.

In other recent news, Fossil Group reported its second-quarter 2025 earnings, showing a 16% decline in net sales to $219 million. However, the company managed to expand its gross margin by 480 basis points to 57.4%. In a strategic move, Fossil Group has launched an exchange offer for its 7.00% Senior Notes due 2026, as part of a broader debt restructuring initiative. This offer allows noteholders to exchange for either 9.500% First-Out First Lien Secured Senior Notes due 2029 or 7.500% Second-Out Second Lien Secured Senior Notes due 2029.

Additionally, Fossil Group has extended the expiration deadline for its exchange offer, consent solicitation, and rights offering to November 10, 2025, after initially falling short of the 90% tender requirement. The company received 82.67% of valid tenders, prompting the extension. Fossil Group is also proceeding with its UK Proceeding, which includes a Convening Hearing scheduled for October 15, 2025. Furthermore, a meeting is set for November 6, 2025, for creditors to consider a restructuring plan under the Companies Act 2006.

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