Crocs rise as Blackstone takes stake

Chief executive John McCarvel announces retirement

Crocs  shoes are displayed for sale at a store in New York yesterday.  Photograph: Jin Lee/Bloomberg

Crocs shoes are displayed for sale at a store in New York yesterday. Photograph: Jin Lee/Bloomberg

 

Crocs rose as much as 14 per cent in early trading today after saying chief executive John McCarvel will retire and Blackstone Group will invest $200 million in the maker of colourful plastic clogs.

The shares climbed 8.8 per cent to $14.50 at 7.44am in New York and earlier surged as high as $15.20. Crocs has been trying to revive its fortunes after consumers tired of its trademark clogs, knockoffs cut into sales and US consumer spending slumped.

The Blackstone stake comes after Crocs attempted to find a buyer for the whole company, people familiar with the situation said in November.

The shoemaker said in a statement yesterday that it will use the funds from Blackstone’s investment in convertible preferred stock to increase share repurchases to $350 million. – (Bloomberg)