Submitted by: Submitted by Schons10
Views: 72
Words: 697
Pages: 3
Category: Business and Industry
Date Submitted: 12/02/2014 08:00 AM
The Crocs shoes company was doing so well once it started out, selling them in over 90 different countries, but then six years later after they started, probably the worst thing that could’ve happened to them happened, the recession in 2008 happened. When the boom hit, the Crocs were pretty much done. Nothing looked like it was going their way. That year, the company had lost $185.1 million in revenue, over 2000 jobs and this forced them to scramble around just to find money to try to pay their debt off. Having to cut over 2000 jobs hurt a lot of people and their families because now some families couldn’t make money. With the recession happening and no one wanting to buy the shoes, they had a surplus of shoes and no one thought they could pull it off. They were given till September that year to pay off their debt.
The Crocs have to have one of the craziest stories when it comes to the recession. In 2006, you seen just about crocs everywhere you would go but then in 2008 it was like crocs were never invented because no one wanted to spend the money on them. In 2006, the company was selling shares to the public, raising more than $200 million, which was the biggest stock offering in a shoe company’s history. The stocks for the Crocs started at $21 a share. With everyone wanting to buy them, Crocs had to ramp up their manufacturing to keep up with what the customers wanted. They made them in many different colors and they even made different version of them, like the way they looked. After doing this, they found themselves two years later struggling and barely being able to sell any of those Crocs. In 2007, they swung from a profit of $168.2 million to a loss of $185.1 million in 2008. Also the cost of a share for Crocs dropped all the way down to just $1. Now you can say that is a huge difference. This even caused the stock price to go down 76%. The chief executive of the company Ron Snyder was replaced by Duerden, who was an industry veteran who ran a consulting...