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    Crocs in financial trouble (our long national nightmare=possibly over)

    By Jennifer Romolini, Shine editor in chief | Fashion – Fri, Jul 17, 2009 5:53 PM EDT

    Man, that's one ugly shoe. (Getty Images)Man, that's one ugly shoe. (Getty Images)There are things that I've lived through that I know, for one reason or another, I will have a hard time explaining to my kids. Things like Michael Jackson (RIP), the Iraq war, bubble tea, the world before the Internet, harem pants, my mom, and of course, Crocs. Really, how did they happen? Who looked at Crocs and thought, "Aerated, bulbous, and bright plastic? That's the footwear for me!"

    Answer: About a zillion people. In the seven years since their inception, customers bought 100 million pairs of the spongy, sling-back, clown-like shoes, the sales of which brought in $168.2 million in profit in just 2007 alone. However, the Crocs magic was not to last. According to The Washington Post, in 2008, just a year later, the company was deep in debt--losing $185.1 million and cutting 2,000 jobs while the Crocs stock price fell 76 percent. Auditors hired to assess the company's financial viability suggested conditions "that raise substantial doubt about the ability to continue." The Post says Crocs has until September to pay off its debt.

    "The company's toast," Damon Vickers, who manages an investment fund at Nine Points Capital Partners in Seattle, told The Post, "They're zombie-ish. They're dead and they don't know it."

    Yikes.

    Perhaps the saddest part of this retail fail story is the fact that the Crocs' design may have ultimately been its undoing. Not because it was ugly, unflattering and buffoonish; but because it is nearly indestructible, which means one pair will last years and years--thus reducing the amount of repeat customers and leaving the company with a massive excess inventory it is unable to unload. What an eerie, tragic, and a weird sign of our times to imagine the supply (warehouses full of forlorn rainbow-colored Crocs) lying around and collecting dust with no demand.

    Despite evidence to the contrary, the people at Crocs remain optimistic: Their last ditch efforts will include marketing to caterers, medical workers, and people with foot problems, and, randomly, trying to get George Clooney involved. I mean, I guess that dude could sell anything.
    Source: Washington Post






     

    155 comments

    • LawDoggy
      LawDoggy  •  2 years 1 month ago
      Say what you will, but Crocs are still here! I just bought three more pairs of their "Cleo" sandals because I read that they are being discontinued. Crocs are available in many new styles (and fewer colors) so we may see them around for a long time. With more and more doctors recommending them (and wearing them) Crocs may not be gone as soon as some of you would like. Nyaa-nya-nyaa-nyaa!
    • Professor Goat
      Professor Goat  •  2 years 7 months ago
      god i hate crocs...so retarded. i like my bare feet better
    • Laney
      Laney  •  2 years 10 months ago
      PTL! There are plenty of comfortable shoes that are fashion forward, so goodbye Crocs! However, since they "last forever" looks like we will still be seeing them for years to come. Oh joy!
    • kenyons
      kenyons  •  2 years 10 months ago
      Crocs makes several different styles of shoe and they don't all look like clown shoes. Some of them are downright cute and stylish, and they have the Crocs comfort at the same time.
    • springtime
      springtime  •  2 years 10 months ago
      I have two pair and love them! I also keep them in the garage. They are great for garden/yard work. They get covered with grass and dirt; just hose them off. They are sturdy and may even outlast the cockroach on this planet.
    • ~*JO JO *~
      ~*JO JO *~  •  2 years 10 months ago
      also they don't last forever. i have to buy at least 2 pairs every
    • touchdown_rams05
      touchdown_rams05  •  2 years 10 months ago
      These shoes might be ugly. But the shoe is very comfortable. I am in the the nursing profession. Its like walking on a soft cushion cloud of air. To be honest I hope they stick around. I have pairs in many colors with many logos on them. I own more crocs then any other one shoe.
    • Sara
      Sara  •  2 years 10 months ago
      Having bad feet - I couldnt care less what people think - I LOVE THESE SHOES - they have made a seriously amazing difference in my life and will be sad if I have to look for something new in the future.....
    • cutebanker
      cutebanker  •  2 years 10 months ago
      ok maybe the military doesn't issue them, but every Marine i know who went to Iraq has a pair.
    • M.J - Fierce Beauty and F ...
      M.J - Fierce Beauty and F ...  •  2 years 10 months ago
      I must say that I personally would not be rocking a pair of Crocs. However it is always a sad thing when a company is doing poorly. Whether they are ugly or not, people were working for this company and this negatively affects their livelihood.
    • k8blujay
      k8blujay  •  2 years 10 months ago
      Personally, they are not my thing.. I wouldn't wear them even if someone paid me too... However, one of my College friends was an orderly at the local hospital and he said they were the most comfortable shoes ever, especially if you are on your feet all the time (like he is)... this guy is one of the most fashionable guys I have ever met too, so not just the typical guys guy (though he is that too.. only from a Abecrombie ad).
    • SUSAN M
      SUSAN M  •  2 years 10 months ago
      I wore the black ones without holes for months to work after my foot surgery. Every other pair of shoes I own hurt my feet, and most still do. Might have to get a few extra pairs. Nurses need comfy shoes, and these worked for me for months. Who cares what the fashionista's think? I dont, that is why I went to nursing school, so I wouldnt have to worry about fashion.
    • Izabella
      Izabella  •  2 years 10 months ago
      there really ugly,I refused to buy them.
    • paula
      paula  •  2 years 10 months ago
      Yep, they're ugly, but they serve an important purpose. I do hope they succeed in keeping the shoes alive for health care workers and people with diabetes, edema, etc. These are the only shoes I can wear all day. Even athletic shoes hurt me, and no hole Crocs in black or tan are much more work appropriate than tennies for me.

      I love George Clooney. One more thing we have in common. =)
    • melloZee
      melloZee  •  2 years 10 months ago
      Thank God. The ugliest shoes ever invented is finally meeting its demise. Oh happy day.
    • Elle
      Elle  •  2 years 10 months ago
      The write opined:

      "Really, how did they happen? Who looked at Crocs and thought, "Aerated, bulbous, and bright plastic? That's the footwear for me!"

      Who thought that? I did for one. Then again, I guess you'd rather have useless, painful, high heeled Manolo's that cost 2x as much and destroy your feet. Comfort wins over fashion every time!!! Personally, I love crocs and I hope they never go out of business!
    • Athena
      Athena  •  2 years 10 months ago
      I love crocs, bubble gum, and daydreaming however there's a time and place for these things. Sometimes to have too much too good is for some not really happening but it is for the other half of us who can appreciate a good comfortable shoe that relies on real comfort.Crocs rock.
    • Dee
      Dee  •  2 years 10 months ago
      The people who hate these shoes have never worn them.I was one of the ones who said I would never wear them until my Grandson said just try them on Maw Maw(we wear the same size) I was hooked on them ever since.They are the most comfortable shoes on the market.The question is how did this company get it's self in such financial straits with the popularity of this product.
    • Amy Boshnack
      Amy Boshnack  •  2 years 10 months ago
      I just tweeted your headline.... funniest things I've read today! @aboshnack
    • cutebanker
      cutebanker  •  2 years 10 months ago
      i NEVER understood these shoes! i threatened to beat my friends when they bought them for their kids! these are not nearly as cool as the eastlands i had growing up. i'll let it fly with kids, but grow @$$ adult men should not be seen in them! and i see it all the time! apparently the military issues camoflauge ones! WTF
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