Crocs May Be On The Brink of Collapsing, Analysts Say

July 17, 2009

US (ChattahBox) – The hideous colorful , but wildly popular, shoes trend ‘Crocs’ may finally be over. The company is experiencing a severe loss in profits, and an overstock of shoes that they just can’t seem to sell, leaving the once thriving business wondering how far into the red they could go.

Crocs were popular for a number of reasons. They were trendy at the time, convenient, so ugly they were cool, and most importantly, they were extremely cheap for a well known, highly sought brand.

But already the company has lost $185 million as people lose interest, and now it is difficult for Crocs to sell even one pair.

What’s more, they are on the verge of collapse after laying off 2000 employees, and have warehouses full of unsold product that they have no idea what to do with.

“They had added a huge amount of infrastructure to meet this demand going forward. Demand fell off, and they had way too much capacity and way too much supply of product,” Jeff Mintz, a financial analyst with Wedbush, was quoted by the Washington Times.

The losses have now surpassed their highest year of profits, which seems to show that Crocs are soon to be no more. So if you love foam-like shoes in garishly bright colors, I would by a few pairs now.


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