Blackstone snaps up stake in Crocs

A FOOTWEAR brand worn by celebrities including actress Terri Hatcher and singer Rihanna has received a multi-million-dollar cash injection.

Private equity giant Blackstone is pumping $200 million (about £121m) into New York-listed Crocs in return for a 13 per cent stake.

Crocs will use the cash for a $350m share buyback, which it expects to launch before the end of March.

The company also revealed that its chief executive, John McCarvel, plans to retire in April. Chairman Thomas Smach said: “We will recruit a new chief executive who will work with the reconstituted board to refine our short-term and long-term strategic plans, which will include a sharper focus on earnings growth with less emphasis on top-line growth.”

Crocs posted a 2 per cent fall in sales in the third quarter of 2013, hurt by weakness in the Americas and Japan.