Apparel manufacturer Guess and watch brand Fossil announced the termination of their negotiations to partner for a line of Guess watches that would have been distributed by Fossil.

“Guess and Fossil were unable to reach agreement regarding certain material terms,” according to a Guess statement issued Monday.

News of the potential deal's dissolution came less than a month after the two companies' Aug. 26 announcement that they were close to inking a 10-year global license deal that would have had Fossil manufacturing Guess watches starting in 2007.

Under the proposed Guess agreement, Fossil would have created a separate company for Guess to expand the global distribution of Guess and Guess Collection watches. Guess and Guess Collections timepieces' annual worldwide sales currently total about $150 million at wholesale. The plan called for the parties to base minimum royalties on wholesale sales of $1.36 billion for the initial 10-year term.

Source : nationalejeweler.com

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