Crocs to close Colorado distribution center
In an effort to cut costs, Crocs (Nasdaq: CROX) said it is consolidating warehouse facilities in Los Angeles and closing its distribution center in Aurora, Colo., by early July, eliminating 37 jobs.
After a 32-percent drop in first-quarter revenue over 2008, the company said it plans to return to profitability by reducing warehouse space 50 percent. To achieve that, it will consolidate into five primary distribution centers: one each in the United States, China, Europe, Japan and Mexico.
Crocs said its shoes are produced in Asia, Mexico and Europe, and then imported to Los Angles, brought to Colorado and shipped to retailers rather than being distributed from the point of importation.
The Los Angeles facility is about four times as large as the Aurora warehouse, staffed mostly by contract labor through a third party, according to Crocs. It does not plan to relocate any of the Aurora jobs.
Although the company did not specify how the cost savings would impact its bottom line, Crocs said the cost benefits would become apparent by the final quarter of the year.
--Compiled by Wendy Geister
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