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Crocs closes last manufacturing facility but says company not 'going anywhere'

Crocs closes last manufacturing facility but says company not 'going anywhere'
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Footwear brand Crocs says it will close its last manufacturing facility, located overseas, but reassured customers that its signature shoe would remain in production.

In a statement Tuesday reported by USA Today, the footwear company confirmed it had closed a factory in Mexico and was preparing to close another in Italy.

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"In connection with ongoing efforts to simplify the business and improve profitability, during the second quarter, the company closed its manufacturing facility in Mexico and moved ahead with plans to close its last manufacturing facility, which is located in Italy," the company said.

On Thursday, a spokesperson for the brand clarified that the company was simply shifting production to third-party manufacturers as it sought to get out of the manufacturing business.

“There have been multiple media reports that Crocs is winding down production in our owned manufacturing facilities,” a Crocs spokesperson told FootwearNews.

“While accurate, some people have interpreted that to mean that Crocs will no longer be making and selling shoes. Quite the contrary; Crocs will continue to innovate, design and produce the most comfortable shoes on the planet. As we streamline our business to meet growing demand for Crocs, we’re simply shifting production to third parties to increase our manufacturing capacity," the spokesperson added.

A financial analyst with Susquehanna Financial LLLP told FootwearNews that Crocs was making a wise business decision to shutter its remaining facilities, as many major fashion brands do not directly own manufacturing facilities.

“About 60 percent of Crocs’s products are produced by two factory partners in China and Vietnam [run by third-parties]," Sam Poser told the website.

“Nobody owns factories anymore. This is actually a good thing for Crocs, that they’re getting out of the factories," he added. "They’re shifting a lot of their production to molded product. The Italy factory [likely] focused on special product that they’re moving away from.”