The company that makes Crocs is heading toward bankruptcy, writes the Washington Post.
No surprise here... in my opinion, Crocs were some of the ugliest shoes ever!
After selling 100 million pairs in 7 years, the company expanded to meet the market demands. Then, people stopped buying Crocks shoes and now the company is bust.
Last year, the company lost $185.1 million and cut some 2,000 jobs.
Why is this story important? Perhaps because is a typical American story these days.
The Washingon Post writes that "the story of Crocs mirrors the country's tale of economic expansion and contraction. At the height of the real estate market, in 2006, the company sold shares to the public, raising more than $200 million in the biggest stock offering in shoe history. It ramped up manufacturing to keep up with demand, only to then find that shoppers were snapping their wallets shut."
Then the only hope is a government bailout or quick bankruptcy...


Comments: 22
Though I wear birkies, I have friends who swear Crocs are the only comfortable shoes they've ever worn. They have evolved from the original design to include some that appear more conventional. The massage while walking is compelling.
The litigious society that claimed these shoes were more likely than others to catch in escalators (have they never worn shoes with laces?) really damaged Crocs reputation. How many things in this country are damaged or destroyed because we sue rather than recognizing personal resonsibility?
Even if Crocs were to cease production, so many knockoffs now exist that this line will not be soon forgotten.
http://www.gather.com/viewArticle.action?articleId=281474977742194
This was a classic case of walkin' stupid. Ugly shoes, extruded from plastic for dam-all cost, and assembled in minutes by the millions. Uncomfortable to wear, and useless for walking, these shoes were BOUND to die. No disposable income? No market. Bye!
I never saw the virtue of plastic shoes with holes in them. They do look like they'd make good gardening shoes. I'm sure they'll be for sale cheaper soon.
Why do we crave fads so much?
Posted by: crocsinc on: July 16, 2009
http://blog.crocs.com/
Today the Washington Post ran an article about Crocs, “Once-Trendy Crocs Could Be On Last Legs,” which some of you may have seen, as it has quickly spread around the web. Here is what Crocs President and CEO, John Duerden, has to say about the story:
In response to the Washington Post’s article about the health of Crocs, Inc., I’d like to clear up a few points. We sell comfortable, durable shoes in a wide variety of appealing styles for men, women and children, and offer great value. This is a good business to be in at a time when families are watching their budgets, and we’re confident in the future of our company.
Critics who suggest we are a one-shoe company couldn’t be more wrong. As we explained to the reporter, we currently have more than 120 styles of casual, comfortable footwear, including sandals, boots, heels, wedges, flats and functional footwear for people who work on their feet or who have foot or back problems, along with our signature clogs. Don’t take my word for it – you can see for yourself an example of the variety of styles we offer such as wedges, flats, sandals, and more.
As the article correctly points out, we face challenges resulting from rapid growth. We’ve taken action to address those challenges, including aligning our production capacity to meet demand, reducing our overhead expenses and the size of our workforce, and paying down debt.
There are more than 100 million consumers in 125 countries that love our product. The Crocs brand is only five years old, and already it’s almost as well-known as Nike and Adidas. It’s an icon and whether people love it or hate it, they talk about it – as the article and the online response to it demonstrate.
Crocs shoes are perhaps the perfect product for a world in which value and simplicity are replacing avarice and over-consumption. We appreciate the support of our many loyal customers, retailers, investors and employees around the world.
John Duerden
President and CEO
Crocs, Inc.