Crocs to shutter stores, cut workforce

New York -- Footwear maker Crocs Inc., best known for its colorful plastic clogs, announced a major restructuring that includes closing stores and job cutbacks.

The plan comes on the heels of the company's disappointing second-quarter earnings results. Earlier this month, Crocs reported that second-quarter profit fell 44% to $19.7 million.

"We have identified the key strategic and structural improvements that we expect will allow the company to achieve its potential," Andrew Rees, Crocs' president, said in a statement. "We have a clear, well-defined strategy for addressing these issues and improving performance. Work is underway already to drive significant change throughout our company in four key areas."

Crocs said it plans to streamline its global product and marketing portfolio, reduce direct investment in smaller geographic markets, create a more efficient organizational structure and close or convert  (to third-party operators) 75 to 100 Crocs-branded retail stores. Crocs has 624 stores worldwide.

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