Copyright MassLive
Fossil, the major men’s and women’s fashion accessories retailer, is filing for Chapter 15 bankruptcy, citing recent U.S. tariffs and tech rivals as factors harming its business. The United Kingdom-based company filed its Chapter 15 bankruptcy petition in the U.S. Bankruptcy Court for the Southern District of Texas in Houston, Texas on Oct. 20, court documents show. The petition was filed after Fossil proposed a restructuring plan in the High Court of Justice Business and Property Courts of England and Wales on Oct. 9. The core of the UK plan is to restructure $150 million in unsecured notes (held by the Bank of New York Mellon N.A. as trustee) and refinance an asset-based revolving credit facility with JPMorgan Chase Bank N.A., the court records say. The restructuring plan would also give $32.5 million in new money financing to the company. Fossil Chief Financial Officer and Foreign Representative Randy Greben said in a declaration that the retail landscape for Fossil “has been an extremely challenging environment in recent years” causing a plummet in sales, with the company’s net losses growing to approximately $106 million in 2024. One of the reasons why is because of fiercer competition over the last 10 years from high-tech competitors such as Apple and Samsung, which sell smartwatches that easily pair with phones. Greben also noted that new U.S. tariffs levied on foreign products in early 2025 have impacted the company, as the majority of Fossil’s products are manufactured overseas, primarily in China. These tariffs have sliced 0.8% off its gross margin in the second quarter of 2025 alone. The Chapter 15 filing is necessary to protect the company’s U.S. assets as it proceeds with the U.K. restructuring, the court documents read. Noteholders will vote on the plan Nov. 6, with the U.K. High Court expected to hold a final sanction hearing shortly after on Nov. 10. If approved, the overhaul is intended to stabilize the company as it continues to navigate the competitive watch market.
