Crocs: Trendy Shoe Maker in Serious Financial Doubt

March 19, 2009

(ChattahBox)—Crocs Inc., the maker of those ubiquitous day-glow colored plastic clogs, wildly popular with both men and women, filed its annual report on Tuesday with the Securities and Exchange Commission signaling it could soon go out of business. Crocs Inc. included an opinion from its auditor Deloitte & Touche LLP, in the report stating there was “substantial doubt” the shoe maker has the cash to stay in business with its plummeting sales and lack of revenue. This is distressing news to the many devotees of the “ugly” crocs. Local businesses may soon see an upsurge in their croc sales, as fans line up to replenish their supply of the garish colored plastic footwear. Crocs Inc lost $185.1 million this past year with worldwide revenues falling by 15 percent.

Croc Inc. expanded its global business facilities in 2007 to keep up with the wild demand for its comfortable plastic shoes by producing additional inventory and adding more warehouse space. Unfortunately, the recession started to hit in 2008 and sales dropped like a stone. Croc Inc now finds itself in a precarious position with falling demand for its somewhat pricey trendy shoes and excess inventory.

Croc Inc. trimmed its work force down to 3,700 employees, closed global plants in Canada and Brazil and tried to hunker down to survive the economic downturn. It may not be enough. Crocs Inc. is expected to post another loss in its next quarterly report. Crocs Inc. is searching for financing to pay off its short term creditors that will be looking for payment in the beginning of April.

We could all wake up soon to a croc-free world. Let’s hope this isn’t the case. Meanwhile it wouldn’t hurt to stock up on the comfy footwear.


Comments

3 Responses to “Crocs: Trendy Shoe Maker in Serious Financial Doubt”

  1. Information About Movies on March 19th, 2009 9:56 am

    […] Crocs: Trendy Shoe Maker in Serious Financial Doubt : ChattahBox […]

  2. Stephanie Kaple on March 23rd, 2009 12:31 pm

    Even during a recession I will not let a great pair of shoes pass me by, especailly on the sale rack. The problem with Crocs is there is no style variety and they are flat! While most will swear by their comfort…no one would wear them for that special event. I can only imagine my future sister in law’s face if I wore Crocs with my bridesmaid dress!

  3. Keith Arnold on April 2nd, 2009 5:50 pm

    Ms. Kaple
    That is an idiotic analogy if I ever heard one.

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