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Crocs Death Watch?


Speaking of Crocs, the beleaguered Niwot-based company makes a much-linked-to list of “Twelve Major Brands That Will Disappear” before the end of 2010. Crocs clocked in at #3:

3. Crocs (CROX) sold the fastest growing footwear in America at one point. In late 2007, the company’s shares traded at more than $72. Now they change hands at well below $2. At the end of March, Crocs got a six-month extension of a critical credit facility. According to Reuters, “Crocs Inc averted a cash crunch by winning an 11th-hour credit facility extension with a California bank, but analysts say the jury is still out on whether the struggling brand can turn around.”  Two weeks before the credit extension, the company’s auditors gave the firm a “going concern” letter, an indication that there would be reasonable chance that Crocs would make it another year. In the fourth quarter of 2008, Crocs lost $43 million after making $55 million in the same period the year before. Revenue fell from $225 million in the last quarter of 2007 to $126 million. Crocs won’t make it through the year.


Personally, Crocs going under wouldn’t surprise me, but I’d sure hate to lose Esquire (#5), Architectural Digest (#7), and our friends at Borders (#2)

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