Investor names director candidates at Fossil Group after stock price drop
Reuters
Published Feb 20, 2024 07:35AM ET
Updated Feb 20, 2024 06:38PM ET
NEW YORK (Reuters) -Investment firm Buxton Helmsley Group (BHG) said it nominated four candidates to the board of directors of Fossil Group (NASDAQ:FOSL), 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 (NYSE:BLK); 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.
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Written By: Reuters
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