Crocs were born of the economic boom.
The colorful foam clogs appeared in 2002, just as the country was recovering from a recession. Brash and bright, they were a cheap investment (about $30) that felt good and promised to last forever. Former president George W. Bush wore them. Aerosmith lead singer Steven Tyler wore them. Your grandma wore them. They roared along with the economy, mocked by the fashion world but selling 100 million pairs in seven years.
The company had expanded to meet demand, but financially pressed customers cut back. Last year the company lost $185.1 million, slashed roughly 2,000 jobs and scrambled to find money to pay down millions in debt. Now it's stuck with a surplus of shoes, and its auditors have wondered if it can stay afloat. It has until the end of September to pay off its debt.
"The company's toast," said Damon Vickers, who manages an investment fund at Nine Points Capital Partners in Seattle. "They're zombie-ish. They're dead and they don't know it."
Now if I can just get the Misses to throw out the ones in our house.
3 comments:
FIrst of all $30 is too much for plastic shoes. However, you can eat them if money gets too tight or so I hear. Maybe that is only the ones not dyed with Chinese coloring though...
BURN THEM ALL!!!!
I actually liked them for my girls. They were awesome on the swim deck for the indoor pools ... non-slip. While my BIG girls don't wear them anymore (not cool), my little girls love them. They stay clean looking and don't seem to get outgrown as quick as shoes.
I may just have to stock up ;)
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