Crocs closing their factories down or is it just a false alarm
Crocs announced that they would be closing their two manufacturing facilities that are remaining, one of which is located in Mexico and the other in Italy. This is said to be happening in a bid to maximize their profit in the business. They have already shut down about 28 stores and are further planning to close almost 160 of the 558 stores they own, as reported on the news in the earlier 2018.
This was a huge shock for the Croc lovers. People who love the comfort and easy wear design of the Crocs are surely surprised to hear the news. Some people refer the Crocs as the ‘unquestionably one of the most hated shoes around the world.’ But that is alright.
The Croc shoe twitter also had the humbleness to respond to their worried fans. In a tweet that said,” @Crocs can you please explain to me how you could justify diminishing our identities? without crocs we are nothing don’t do this to us baby oh NO”. To which the Croc Shoes replied, FALSE ALARM: We aren’t going anywhere
They further tweeted, Crocs stated: “Take comfort, #CrocNation. Our future remains as bright, bold and colourful as ever.”
The chief financial officer will also leave the Croc business next year in order to outsource its production of crocs. CFO Carrie Teffner will also resigning off her position this month. She will be effectively leaving the Croc company on 1 April, 2019, and replaced Anne Mehlman, who works at the Zappos.com ( which is a shoe retailed owned by Amazon). The Daily Mail reported that the CFO Carrie Teffner will be seeking to ‘pusue strategic board and advisory work’.
It has not yet been confirmed where the Croc shoe manufacturing will take place and also in which country.
At the moment, the company’s headquarters is situated in Niwot, Colorado in the United States, which is near to Denver.
It is estimated that between the years 2014 and 2017, more than half of price decline was experienced by the croc company. It fell to $5.94 which is the lowest they have gone yet.
CEO and president Andrew Rees said that: “Our clogs and sandals continue to perform well, and we are well positioned for the back half of the year.
He further added,”We expect double digit e-commerce growth and moderate wholesale growth to more than offset lower retail revenues due to operating fewer stores and business model changes.”