For years, Crocs were the ubiqiuitous celebrity summer footwear of choice, with fans including Jack Nicholson, Whoopi Goldberg and Rihanna.
But today the US makers revealed that a collapse in profits was forcing it to shut 100 shops and axe 200 jobs.
The colourful resin-moulded clogs appear to have fallen out of fashion just two years after turnover peaked at more than £600 million, when the Colorado-based company counted stars such as actresses Alicia Silverstone and Teri Hatcher among its customers, along with the children of David and Victoria Beckham.
Today, however, the company said profits had slumped by almost half in the second quarter of this year to £11.4 million. President Andrew Rees said the firm needed “dynamic change” in its “strategy, organisation and approach to the market.” Ironically, part of the company’s problem is that the waterproof shoes — which have been derided as the world’s ugliest footwear — are so robust that owners did not need to replace them.
Crocs will now ditch plans for fashion leather boots and dressier footwear and concentrate on sandals, loafers and other casual shoes. It will also cut the number of styles available by up to 40 per cent.
Six months ago, private equity giant Blackstone invested £117 million to help revive the firm. but it has now decided on drastic action instead, by closing shops and cutting jobs.
Around 100 of its 600 stores around the world will close, with the loss of up to 200 jobs. Crocs did not reveal the locations of the closures.
It has more than 115 company-owned and 98 franchised stores in Europe, including three in London, at Covent Garden and both Westfield shopping centures. It once planned to open up to 30 shops in Britain.
