Crocs, Inc. (CROX) is showing yet again that its growth days are history. The fad shoe maker has announced that it sold certain assets of its Foam Creations business unit in Quebec City, Quebec to a Canadian company led by the former Foam Creations founder. The sale includes manufacturing assets as well as finished inventory and raw materials. The business will continue to operate and will retain 26 employees.
This sort of announcement would traditionally not make much news and might not make much impact, but it shows the company is shrinking. Investors of the high-growth fad stock from 2007 have an entirely different company on their hands.
Crocs shares closed at $3.33 Friday and are indicated down at $3.30 in early trading this morning. If $3.33 is taken out and the stock trades lower, then this will market yet even newer 52-week lows from Friday’s trading.
Jon C. Ogg
October 6, 2008