According to this, Crocs are toast. Just a few months ago I declared Crocs to be one of the worst fashion fads ever. The company’s motto should be “Crocs: helping Americans to look like lazy slobs since 2007.” Crocs have been yet another crazy, boom period-inspired fetish that will go away. Only in a bubble period could a company that makes those stupid shoes trade its stock at such a high price to clueless speculators throwing their money away at short-term glory. Thank goodness for the Croc Correction.

Crocs (CROX) sold the fastest growing footwear in America at one point. In late 2007, the company’ shares traded at more than $72. Now they change hands at well below $2. At the end of March, Crocs got a six-month extension of a critical credit facility. According to Reuters, “Crocs Inc averted a cash crunch by winning an 11th-hour credit facility extension with a California bank, but analysts say the jury is still out on whether the struggling brand can turn around.” Two weeks before the credit extension, the company’s auditors gave the firm a “going concern” letter, an indication that there would be reasonable chance that Crocs would make it another year. In the fourth quarter of 2008, Crocs lost $43 million after making $55 million in the same period the year before. Revenue fell from $225 million in the last quarter of 2007 to $126 million. Crocs won’t make it through the year.