Crocs Auditor Questions Shoe Maker's Viability

By: Associated Press
By: Associated Press

The auditor of Crocs Inc. says it has "substantial doubt" about the Niwot-based shoe company's ability to stay in business amid falling revenue.

Crocs disclosed the opinion of Deloitte & Touche LLP in an annual report filed Tuesday with the Securities and Exchange Commission.

Crocs said it needs to find a cost structure that its revenues will support. The company lost $185.1 million last year as revenues fell almost 15 percent to $721.6 million.

Crocs said it must secure financing and maintain enough liquidity to pay obligations. It said it has $22.4 million in borrowings under a loan that matures April 2.

As of Dec. 31, it had $51.6 million in cash and cash equivalents.

Crocs officials didn't immediately return a phone message to The Associated Press Wednesday.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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