Lightweight foam shoes manufacturer Crocs (Niwot, Colorado / USA; www.crocs.com) is downsizing. Following the closing down of its plants in Bosnia, China, Vietnam and Mexico, the company is intending to shutter its remaining production site in Padua / Italy, and in the future will rely exclusively on contract manufacturing. Regions that are not defined as core markets are to be taken on by distributors – these include South Africa, Taiwan, the Middle East and Hong Kong.

The news sparked a "crisis" for some fans of the popular shoes, after the company released a statement last week saying, "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." Crocs had to calm followers on Twitter, saying its future "remains as bright, bold and colourful as ever."

The shoe company is looking to downsize the number of its stores worldwide by around 160 to below 400. Administration should also not be left unscathed, with a reduction to an undisclosed extent already having been announced.

The reason for the drastic measures is the company's latest poor financial performance. Among other things, Crocs reported an operating loss of USD 6.2m in 2017 (just under EUR 5.5m), with revenues of USD 1.02 bn. The US company has nearly 4,400 employees and sells its shoes in more than 90 countries.