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Japan questions Crocs' safety

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After losing about 40% of its value last week, Crocs (NASDAQ: CROX) has another headache.

The Wall Street Journal reports (subscription required) that "Japan has asked the maker of Crocs to look into changing the design of its footwear after complaints that children wearing the colorful plastic clogs have had their feet injured on escalators."

The company has faced similar accusations in the United States and Crocs is reportedly working with the Elevator/Escalator Safety Foundation (I can't believe that even exists) on public education initiatives.

What does all this mean for Crocs? Probably not much beyond the company's already dismal financial results, although the posters warning about the dangers of Crocs near escalators in Japan probably won't do much to spur sales.

Crocs' dramatic fall from grace has been an interesting story to watch, and the company just doesn't seem to be able to catch a break.

The safety concerns are not disclosed as risk factors in Crocs' latest 10-K, indicating that the company's management may not see them as a material threat to sales.


The safety concerns are not disclosed as risk factors in Crocs' latest 10-K, indicating that the company's management may not see them as a material threat to sales.

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Last updated: November 27, 2009: 02:06 AM

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