Footwear maker Crocs Inc. announced it will close its Quebec factory in July, putting 670 people out of work as the company moves production to Mexico.
Shares of the Colorado-based company were pounded in Tuesday trading after it lowered first-quarter forecasts, blaming fewer sales of the colourful, funky shoes and costs related to the shutdown of the plant.
Although its Canadian manufacturing plant will close, Crocs will keep open its sales and marketing office and retail store in Quebec City. It will also open four additional Crocs branded stores this year.
The company said 262 people had already been laid off and the rest will lose their positions by the end of July.
Crocs will be able to meet its North American needs through a flexible manufacturing operation in Mexico, said chief executive Ron Snyder.
“That’s a very vertically integrated factory, where the Canadian facility didn’t have all of those capabilities,” Snyder said.
