Crocs Going Out of Business?

Believe it or not, Crocs shoes are certified by the US Ergonomics council and the American Podiatric Medical Association. Even with it’s publicly admitted “ugly” looking shoes (as seen from the image), the Crocs shoes has got it very own pool of supporters and fans all over the world.

Crocs™ shoes are sold in more than 125 countries and come in a wide array of colors and styles. Why are there gossips about Crocs going out of business been flying around?

Crocs Going Out of Business?

Crocs, Inc. (NASDAQ: CROX) is a designer, manufacturer and retailer of footwear for men, women and children under the Crocs™ brand.

Started in 2002 as footwear for boating, Crocs shoes were waterproof and the rubber kept you from slipping. They produce soft, comfortable, lightweight, superior-gripping, non-marking and odor-resistant shoes. In other words, they were perfect.

In 2006, Crocs went public — raising $200 million which it used to expand production to meet growing demand.

When the economy began its long downward tumble in 2007, Crocs found it had borrowed too much money to build the plants it thought it would need to meet growing demand, just as that demand got crushed in the downward escalator.

In 2008, Crocs lost $185 million. Its auditors doubt it can survive as a going concern since it’s having trouble repaying its debts. As Crocs’ auditor wrote in its 10K, “the maturity of the Company’s Revolving Credit Facility on April 2, 2009 and losses from operations raise substantial doubt about its ability to continue as a going concern.”

And for shareholders, Crocs has mirrored the economic bubble of the Bush era.

Its stock rose 431 percent from its $13 IPO price until it peaked in October 2007 at $69 a share — which coincided with the Dow’s all-time high. Since then Crocs stock has lost 95 percent of its value as its market capitalization has plummeted by $5.5 billion to its current $266 million.

Crocs Going Out of Business — Say It Ain’t So

Check out the video of Crocs going out of business related discussion on youtube:

Even though Crocs has reported major financial losses, they say they have no plans to go out of business.

Crocs isnt going out of business YET but they’re in “critical condition” as their number are down. If they were a patient they’d be listed in critical condition.

However, there seems to be some improvement in their just released 2009 third quarter financial results:

“The Company reported net income of $22.1 million in the third quarter of 2009 with diluted earnings per share of $0.25, compared to a third quarter 2008 net loss of $148.0 million, or ($1.79) per diluted share.”

http://company.crocs.com/2009/11/05/crocs-inc-reports-2009-third-quarter-financial-results/

Is Crocs going out of business? Only time will tell!

For latest updates and more info, visit crocs official website at http://www.crocs.com

As an additional notes:

Crocs shoes are an example of an amazing product that led to an amazing company, and all because of one amazing man. The Crocs shoes story is an inspiration to free enterprise worldwide, and a testimony of just what can happen when you choose to follow your dreams.

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