Trending | News

Crocs Set To Close All Manufacturing Facilities After CFO Resigns

The Tab

Ever since Crocs hit store shelves in 2002, fans of the comfortable footwear have been stocking up their closet with new pairs every time its latest styles comes out.  

However, the shoe brand appears to be in dire straits after it announced in a press release that the company is set to shut down its two remaining factories in Mexico and Italy.

While Crocs is doing so to "improve profitability," it didn't elaborate on its manufacturing future.

Despite already shutting down 28 of its boutiques in the last quarter, the company has also declared it will be closing another 132 of its 530 worldwide stores by the end of the year.

This announcement comes on the heels of the company's declining growth, despite the fact that Crocs have climbed 43 percent in shares "since the beginning of the year, while the stock itself has more than doubled in the last 12 months."

Andrew Rees, CEO and president, said: "Our clogs and sandals continue to perform well, and we are well positioned for the back half of the year," Crocs CEO and president Andrew Rees said in the press release.

"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," he continued.

Crocs also confirmed its CFO, Carrie Teffner, has resigned, and will leave the company at the end of March 2019. It was also announced she'll be replaced by Anne Mehlman, CFO of Amazon-owned shoe retailer Zappos.com.

Since Mehlman will take Teffner's duties on August 24, the latter will transition into the role of Executive Vice President Finance and Strategic Projects.

However, there is still hope left for the company, as they recently released high heel Crocs, which have become a big hit with consumers.  

"I loved the shoe so much that I wanted to purchase another one, but unfortunately they had sold out. These are the most comfortable and coushiony shoes ever," one shopper wrote on Amazon.

"You just have to get used to the bumpy surface on the sole of the shoe. It is made to stimulate circulation, I guess, but at first it was a bit uncomfortable, than you break them in and Oh how wonderful they are!" they continued.

"LOVE these shoes!! I have several pairs of Crocs and will continue buying them as they are very comfortable and look great!! This is the first pair of Crocs I've purchased that have a heel and the are stylish and very comfortable," another reviewer chimed in.

"I was worried because she is 71 years young and I was afraid they would be too high for her, but she loved them," a fellow customer added.

Several celebrities have also been seen in Tinseltown rocking Crocs, so while the company may be downsizing, we don't expect the business to be gone for good.

Do you wear Crocs? Let us know in the comments!

[H/T: CBS News, Daily Mail]

Maya has been working at Shared for a year. She just begrudgingly spent $200 on a gym membership. Contact her at maya@shared.com