This week, a famous retailer in the U.S. announced that they will be shutting down all remaining manufacturing facilities. Crocs, a popular shoe company, made the announcement after a few years of struggling to make it financially in the era of online shopping.
In the spring of 2017, the company revealed that they would be shutting down hundreds of stores due to the decline of in-person sales. Crocs president Andrew Rees said that they were wanting to “focus on removing unnecessary complexity from our business, we conducted a comprehensive review of our cost structure.”
Now, a year later, Crocs has revealed two important announcements. They will be closing all of their remaining manufacturing facilities, and one of their most important executives, their executive vice president and chief financial officer, will be resigning.
The company said that the reason for shutting down the manufacturing facilities was to "simplify the business and improve profitability." The company is based out of Niwot, Colorado. However, their manufacturing facilities are located in Mexico and Italy. Both bases will shut down.
According to CBS News, Carrie Teffner, the company’s executive vice president and chief financial officer, will be leaving the company as of April 1, 2019. According to the company, former Zappos’ employee Anne Mehlman will be taking over Teffner’s duties.
The news of the manufacturing facilities shutting down does not necessarily mean that the company is going out of business, but it does mean that they have been unable to survive with the same popularity that they once had and it could point to a bleak future.
The company launched in 2002 and took the world by storm. Their shoes became particularly popular among hospital workers because of their extreme comfort. However, among the fashionistas of the world, Crocs were simply the punch line of many jokes.
Last quarter, the company revealed they had closed an additional 28 stores. That, combined with the hundreds they had closed last year, leaves around 400 locations left worldwide.
After the news was made about the increased number of stores shutting down and now the manufacturing facilities, the Internet began freaking out. Some were rejoicing about the potential end of Crocs, while others are upset! Below are some of the hilarious comments:
At this point, the president remains hopeful for the company's future. What do you think about this announcement? Let us know! Do you wear the shoes?! In other recent news, please be praying for the dozens of children on their way to camp who were killed in a bus from an airstrike.