This Iconic Watch Brand Just Declared Chapter 15 Bankruptcy
Fossil was founded in 1984 by two brothers with a dream of creating sophisticated and modern watches at an affordable price point. It designs budget-friendly watches and accessories for both men and women. Currently, the most expensive Fossil watch for sale on Amazon costs $310. The brand grew steadily in popularity, especially when the brothers decided to merge Fossil with existing watchmakers in Switzerland, otherwise known as the watchmaking capital of the world.
Fossil’s bankruptcy filing probably doesn’t come as a surprise to those who pay attention to business news. They are aware of market factors that have been hurting retailers like Fossil, and of headlines that indicate trouble for affected companies. Last year, Fossil closed 54 store locations worldwide. This move was made in response to a 19% drop in revenue, and was meant to save the company $100 million in 2025. At the end of 2024, Fossil had 114 store locations in the Americas, and 248 store locations globally. There are currently no Fossil stores in Arizona, although it is sold at several authorized retailers such as Dillard’s and Buckle. It also has licensing agreements with other brands like Kate Spade New York, Tory Burch, and Skechers. Despite these attempts to revitalize, Fossil filed for chapter 15 bankruptcy in Texas on October 20, 2025.
Fossil stated that it has $300 million in debt in its bankruptcy petition. Of that $300 million, $150 million is in unsecured notes, and the other $150 million is in revolving lines of credit. Fossil currently has 214 stores in 130 countries. This bankruptcy filing could potentially mean that 4,500 jobs at these stores are at risk. In Fossil’s UK bankruptcy case, the company has proposed a plan to restructure its unsecured debts. This restructuring would also provide Fossil with $32 million in new financing. The company’s creditors will vote on the plan on November 6, 2025, and the U.K. high court will hold a sanction hearing on the matter on November 10, 2025. At that time, Fossil’s future in both the United States and abroad should become more clear. Ideally, Fossil will be able to use bankruptcy to preserve as many jobs as possible.
The economy has been rough recently for businesses across a wide range of industries. Experts cite a few different factors as the causes behind Fossil’s bankruptcy filing, including:
- Tariffs: Since coming into office for the second time, President Donald Trump has caused waves in the national and global economy by enacting widespread tariffs. Tariffs essentially increase how much tax customers pay on goods imported from other countries. Fossil is a British company currently subject to the 10% blanket tariff on imported goods. This increases the price for customers who already shop this brand for relative affordability.
- Cost of living: Living expenses rose dramatically in the years following the pandemic. Mortgage interest rates remain high, and groceries, utilities, and other goods and services cost more than ever. The people most affected by the cost-of-living increase are those who might shop for watches at Fossil. When more of their paychecks go to paying for essentials, there is less room in the budget for jewelry and accessories.
- Smartwatch competition: It’s becoming less and less common to see someone wearing a traditional wristwatch. FitBit, Apple, Samsung, and other tech companies have produced smartwatches that allow us to track our steps, heart rate, and other health metrics. Some still wear watches as a status symbol, but tend to gravitate towards higher-end luxury brands.
Fossil’s bankruptcy filing shows that economic issues that plague the United States are just part of a larger, global economic climate. Americans aren’t the only ones struggling, and international financial issues can eventually make their way to our court systems. Thankfully, bankruptcy is available to help corporate and consumer creditors protect themselves from creditors and clear burdensome debts. If you’re seeking experienced bankruptcy representation in Phoenix or Tucson, Arizona, start your search with Atlas Bankruptcy Lawyers. Our skilled lawyers offer flexible 0% interest, $0 down payment plans, and make getting started risk-free with your free consultation by phone. Schedule your free consultation with Atlas Bankruptcy Lawyers today at 602-649-4949.
What Is Chapter 15 Bankruptcy?
Chapter 15 bankruptcy is one of the least frequently discussed forms of bankruptcy in the United States, with chapter 7 and chapter 13 bankruptcy being more common among consumers, and chapter 11 being more popular with large corporations. Chapter 15 is a rarer chapter of bankruptcy because it is specifically meant for international corporations. There were only 65 chapter 15 bankruptcy cases filed in the United States in 2024. Typically, an international company will declare chapter 15 bankruptcy after declaring bankruptcy in its home country. Once the foreign bankruptcy proceeding has been recognized, the debtor is protected from creditors in the United States by the automatic stay. Creditors from the United States and abroad have the right to file claims in a chapter 15 bankruptcy case. Overall, it is meant to improve communication and fairness between countries when an international business goes bankrupt.
How a chapter 15 bankruptcy case resolves depends on how the foreign bankruptcy proceeding is resolved. In the states, a business can file for chapter 11 bankruptcy and restructure its debts to continue operating. It can also file for chapter 7 bankruptcy to clear unsecured debts and liquidate the business. But that all depends on what procedures are available in the company’s home country.
If you’re reading this article, there’s very little likelihood that chapter 15 bankruptcy is the best solution for your debt issues. Chapter 7 and chapter 13 are more suited for average individuals who need help with their debt. But determining which is best for your unique circumstances isn’t always straightforward. Discuss your situation in greater detail with an experienced Arizona bankruptcy lawyer with no risk or obligation. Contact Atlas Bankruptcy Lawyers for your free consultation today at 602-649-4949.
Filing For Bankruptcy In Arizona With Quality Legal Representation
Several industries are struggling in a difficult post-pandemic economy. You could be one of the many people feeling the strain of higher living expenses and reduced income. Do you see your credit card balance working its way up each month, with no foreseeable change to your financial situation? Do you ignore phone calls from unknown numbers, fearing they are creditors threatening repossession and other forms of collection when you have no way to pay? Bankruptcy can put a stop to this cycle and give you a stepping stone to a brighter future after your debts have been cleared. Debtors who file for bankruptcy with qualified bankruptcy counsel see the best case results. But it can be intimidating to even schedule a consultation with an attorney if you assume you don’t have the means to pay for their expertise. Our firm reduces barriers to filing for bankruptcy by offering free phone consultations and budget-friendly payment plan options that start as low as zero dollars down. There is no risk or obligation to speak to one of our dedicated Arizona bankruptcy lawyers about your situation. Schedule your free consultation today at 602-649-4949 to learn more
