Crocs Inc. has sold certain assets of its Foam Creations business unit located in Quebec City, QU, to a Canadian corporation led by former Foam Creations founder Andrew Reddyhoff.
The sale includes certain Foam Creations manufacturing assets as well as finished inventory and raw materials. The business will continue to operate out of its existing facility in Quebec City and will retain 26 local employees. The Foam Creations business unit was previously responsible for the manufacture and sale of industrial goods under the Crocs corporate umbrella. The business will continue to produce a range of industrial products such as spa pillows and kayak seats but will not operate in the footwear industry.
“This is really a win-win situation as this divestiture allows us to add strategic focus to our core business – Crocs brand footwear,” said Ron Snyder, president and CEO of Crocs, Inc. “We will maintain our sales and marketing office and retail store in Quebec City and will be expanding our presence throughout the country including the opening of additional Crocs branded stores in Montreal and Toronto.”
Crocs Spokeswoman Tia Mattson told SEW that the sale of Foam Creations was a cost reduction measure that would have “little to no effect” on the company. Mattson added that no manufacturing capabilities would be impacted by the movement, and that Crocs has reallocated the product development to other facilities.
In April, Crocs announced that it would close Canadian manufacturing operations to consolidate production at lower cost company-owned and third-party facilities.
