Crocs Explores Strategic Alternatives, May Go Private

(RTTNews) - Footwear maker Crocs Inc. (CROX) is considering a move to go private among other strategic options, according to reports citing people familiar with the matter. Shares of Crocs jumped ten percent at close on Wednesday's regular trade, following the news.

Crocs, well known for its colorful clogs, has had talks with a group of private equity firms, including Blackstone Group LP and KKR & Co LP to discuss options of going private, reports indicated.

However, the Wall Street Journal quoting people familiar with the matter, said the buyout talks may not lead to a likely sale. This would leave Crocs to mull over other alternatives to boost shareholder value, which might include a stake sale or joint venture.

Niwot, Colorado-based Crocs has been struggling lately with revenues dropping significantly, reflecting lower sales of its clogs in the Americas and Japan. For its fiscal third quarter, the company reported a 71 percent drop in profit hurt by sales decline and increased expenses.

CROX closed Wednesday's regular trade at $13.89, up $1.24 or 9.76%, on the Nasdaq. The stock further gained $0.04 or 0.25% in after hours trade.