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Fossil - No Good News !

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  • Fossil - No Good News !

    Another article in the Dallas Morning News about Richardson, Texas based Fossil cutting costs and payroll. They will also try to renegotiate existing leases.

    They join everyone else in this mess!

    Not a DMN digital subscriber or would have posted the article.

  • #2

    Fossil makes more cuts and checks into tapping government relief

    The Richardson-based fashion watch and accessories maker has cut payroll and is extending vendor payments and rents as it explores the Fed’s Main Street Lending program.

    Fossil Group's headquarters campus is in Richardson. The buildings total 535,000 square feet along N. Central Expressway.(Maria Halkias)
    By Maria Halkias

    8:09 PM on May 14, 2020

    Fossil is cutting costs, including employee pay, and said it’s delaying reporting its first quarter and looking into its eligibility for financing under the Federal Reserve Bank’s Main Street Lending program.

    The Richardson-based fashion watch and accessories maker said that effective March 30, it cut base salaries for “a substantial number” of its worldwide employees and its executive officers. Board members also deferred their cash compensation for first quarter and reduced it by 20% for the second quarter.

    Hourly employee pay has been reduced by cutting work weeks from 40 hours to 32 or 24 hours a week. Some employees have been furloughed, and that followed February staff cuts. Fossil’s headquarters has been closed during the stay-at-home period in Texas.

    Fossil said it’s asking to modify its rent on stores and offices. The company also operates in Europe and Asia.

    Moody’s credit rating for Fossil of B2 is below investment grade but on the higher end of that scale. Fossil had sales of $2.2 billion last year and reported a loss of $52 million. As of the end of 2019, it had had cash of $200 million and a small amount of long-term debt of $179 million.

    Fossil also said in a filing on Tuesday that it has extended payments with vendors and suppliers and is in discussions with third-party trademarks to reduce its royalty obligations for 2020.

    Fossil owns many of the brands it makes: Michele, Skagen, Misfit, Relic and Watch Station. But it also makes fashion watches and wearables for other brands such as Armani Exchange, BMW, Chaps, Diesel, DKNY, Emorio Armani, Kate Spade New York, Michael Kors, Puma and Tory Burch.

    Fossil said in a filing that it plans to delay the filing of its quarterly report for the three months ended April 4 under a 45-day extension granted for the pandemic period by the Securities and Exchange Commission. The company said it plans to file results no later than June 29.

    Maria Halkias

    Fossil shutters ‘substantially all’ of its Dallas distribution site, cuts over 220 workers for now

    By Brian Womack – Staff Writer, Dallas Business Journal
    Apr 2, 2020, 8:54 am EDT

    "Flesh could not keep its glamour, nor eyes their sheen. They would go to nothing soon. But monsters are forever"

    “America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves.
    If destruction be our lot, we must ourselves be its author and finisher.
    As a nation of freemen, we must live through all time, or die by suicide".
    Abraham Lincoln


    • bundamania
      bundamania commented
      Editing a comment
      Thanks Mike...

  • #3
    hard tymes...sad news


    • #4
      Thanks for the HU, and information, Eric. Sad news indeed.