Is Crocs here to stay?
July 21, 2009
On July 16, a Washington Post article ran claiming Crocs, the company that sells bright-colored, spongy shoes, will be bankrupt by September.
Summit County only just barely got its own store that opened in March at the Tanger Outlet Center at Kimball Junction.
The article cited evidence for its claim by pointing out the company lost money and cut jobs in 2008. This year, the company is facing a surplus of product, but declining demand.
Tia Mattson, spokesperson for the company, said the accusations stem from a misunderstanding. The company has recently been operating on a revolving line of credit that expires in September.
Because Crocs is a publicly-traded company, it has to report its profits and debts. That’s the source of the speculation that its in trouble. But the documents made public paint a limited picture of the company, she said.
"We have more cash than debt, so it’s hard to go bankrupt," she said in an interview Friday.
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Also, Mattson said the company’s internet and retail which would include the Park City store sales are healthy.
She emphasized that the company has a wide line of products that use the Croslyte material. The retail stores are doing so well because they’re able to showcase the broad styles offered.
In response to other questions, Mattson referred to a blogged response from the co-founder and CEO John Duerden at blog.crocs.com. The letter thanks specific individuals for their support in response to the Washington Post article, but fails to address the over-supply and declining demand issue raised by the Post article.
Mattson declined to comment on sales figures, past or predicted.