Crocs Said to Explore Strategic Options
The company known for its “love it or hate it” brightly colored shoes has held talks with well-known private equity firms, Blackstone (NYSE: BX) and KKR & Co. (NYSE: KKR). Bloomberg described the chances of a deal emerging with these firms as being “slim” due to valuation reasons.
Crocs has seen its market value peak at over $5.6 billion in 2006, as its business has declined ever since competition grew and cheaper knock offs flooded the market.
The company reported record earnings of $168 million in 2007. Bloomberg is projecting the company to earn $65 million this year. A key factor that has led to the company's poor performance is the lack of senior leadership, as managers in Asia, Latin America and North America have left the company in recent months.
Shares of Crocs spiked higher as the headlines hit the news wires. Shares were trading higher by eight percent, hitting a daily high of $14.53.
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