Investor names director candidates at Fossil Group after stock price drop

By Thomson Reuters Feb 20, 2024 | 6:35 AM

NEW YORK (Reuters) – Investment firm Buxton Helmsley Group said it nominated four candidates to the board of directors of Fossil Group, after the fashion design company’s stock lost three-quarters of its value over the last year.

Buxton Helmsley, which has a roughly 1.4% interest in Fossil, said the company, known for its fashionable watches, needs fresh blood to help rebuild trust with investors.

“Given the board’s abysmal judgment and failure to oversee management for years, the need for immediate change at Fossil is abundantly clear,” Alexander Parker, Buxton Helmsley’s senior managing director, told Reuters.

Parker said management and the board, which currently has eight members, made strategic mistakes that have hurt all shareholders.

A representative for Fossil was not immediately available for comment.

Fossil’s stock price has dropped 29% so far this year. Over the last 52 weeks, the Richardson, Texas-based company’s stock tumbled 76% as revenue and net income fell.

Fossil shares closed at $1.04 on Friday, valuing the company at $55 million.

Buxton Helmsley said its nominees to the board are: lawyer Pamela Corrie, who was general counsel at GE Capital; Charles Garcia, who worked in the financial services industry at firms including BlackRock; former Justice Department official Deirdre O’Connor, who worked with companies entering bankruptcy; and accountant Rumbi Bwerinofa-Petrozzello, who has expertise in audit and financial forensics.

(Reporting by Svea Herbst-Bayliss; Editing by Leslie Adler)