Hooray! The word on the street is that foamy shoe creator Crocs are nearing the end of their brightly-colored reign of terror. The Washington Post reported that the shoe company, having debuted during an economic boom in 2002, are failing to stay afloat amidst the current recession. Last year the company experienced $185.1 million in losses, slashed about 2,000 jobs (we are not happy about that part) and was barely able to find money to pay down millions in debt. Now it's stuck with a surplus of shoes that (shockingly) no body wants and its auditors are wondering just how long the company can keep up this charade. It has until the end of September to pay off its debt so time will only tell after that. Damon Vickers, who manages an investment fund at Nine Points Capital Partners in Seattle, is one who isn't holding his breath."The company's toast," he said. "They're zombie-ish. They're dead and they don't know it."
The brand's short lifespan comes as no surprise by many and has been a long time coming for even more. They have been serving their purpose as a odd replacement to flip flops for the past 7 years, during which they manged to sell over 100 million pairs. People raved about the shoes' lightness and comfort and paired Crocs with an endless array of ensembles, all of which immediately became tragic fashion mistakes. But, thankfully, like most over the top trends the company has run out of steam and seem to be falling helplessly toward an imminent demise. The problem is, everyone seems to see it except them, despite the fact that an independent auditor expressed concerns about "conditions that raise substantial doubt about our ability to continue," and the company's stock price recently plummeting by 76 percent. In fact, company's newest CEO John Duerder just released a statement that George Clooney has promised to work with the company, saying a comeback is already in the works. "The bottom line is, people talk about Crocs," he said at a conference with analysts. "They either love them or hate them, but it's in the vernacular." We'll just have to wait and see for how long.
Article Source: newyorkmag, The Washington Post
Photo Source: Second City Style
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