Business at Crocs has hit the rocks — and now the company is on the block.
The embattled footwear maker, whose neon-hued clog business has been down at the heels due to dwindling demand, has been in talks to go private with a number of buyout firms, including KKR and Blackstone Group, according to sources.
Nevertheless, the talks recently stalled as Crocs demanded a higher price than bidders were willing to pay, insiders said.
As such, it’s not clear whether a deal will happen.
Other possible strategic alternatives include a sale of a minority stake or a joint venture, according to banking sources.
“Upon close inspection, the company’s books may be even less attractive than its shoes,” quipped one banker. “Sales have been in free fall for a while now, and it’s an open question whether Crocs isn’t just a fad that has faded away for good.”
Crocs shares surged 9.8 percent to $13.89 Wednesday after the Wall Street Journal reported a possible buyout, giving the company a market capitalization of $1.3 billion.
Still, that’s a small fraction of Crocs’ peak stock price, which in 2007 had hovered briefly near the $70 mark, valuing the company at more than $5 billion as a craze for the spongy shoes made them seemingly ubiquitous among kids and their parents.
Crocs has scrambled to counter cratering demand for its clogs by expanding into wedges and sandals, but the strategy has yet to gain traction.