Crocs CEO leaving as Blackstone invests $200M
THE ASSOCIATED PRESS December 30, 2013 7:48AM
Updated: December 30, 2013 7:48AM
NIWOT, Colo. — The company that makes Crocs shoes is getting a $200 million bailout from a private equity fund, and its CEO is retiring.
Crocs shares peaked in 2007 as buyers snapped up the clogs known for being comfortable but ugly. But it hasn’t been able to add new products with the same popularity. Its shares rose 10 percent in premarket trading Monday.
Crocs says it will use the money from Blackstone for a $350 million share buyback.
As part of the deal, Blackstone gets two seats on the Crocs board. And CEO John McCarvel is retiring and giving up his board seat around the end of April.
Crocs says fourth-quarter revenue will be at the low end of what it had expected, and its quarterly loss will match its worst prediction.