Crocs sniff $200m investment boost
You either love them or hate them, but the firm behind the Crocs brand of plastic clogs is attempting a revival of fortunes, with a little help.
Shoe manufacturer Crocs rose as much as 14pc in early trading after saying chief executive John McCarvel will retire and global investment company Blackstone will invest $200m (€145m) in the firm. It will give it a 13pc stake in the company.
Crocs has been trying to revive its fortunes after consumers tired of its trademark clogs, while knock-offs cut into sales and US consumer spending slumped.
In exchange for the $200m, Blackstone will receive preferred stock that can convert to common stock in three years if certain conditions are met. It also gets two board seats. Crocs intends to use the investment to help pay for a $350m stock repurchase it expects to launch in the first quarter.
Established in 2002, Crocs sell in more than 300 four-season footwear styles in about 125 countries.