Investor names director candidates at Fossil Group after stock price drop (updated)

Fossil

20/02/2024 22:26

(Adds comment from company in paragraphs 5 and 6, share price
in paragraph 8)
       NEW YORK, Feb 20 (Reuters) - Investment firm Buxton
Helmsley Group (BHG) said it nominated four candidates to the
board of directors of Fossil Group  FOSL.O , 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% stake 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.
    Fossil regularly engages with shareholders, values
constructive feedback and routinely considers board composition
and refreshment, a representative for the company said, adding
it will review BHG's nominations.
    "Fossil has repeatedly offered to engage with BHG, but each
offer was rejected by BHG," the representative, Christine
Greany, said. 
    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. The share price rose nearly 1% to close at $1.05
on Tuesday.
    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 and
Bill Berkrot)
 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
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