US shoemaker Crocs' chief to retire as Blackstone picks up $200M stake
Crocs Inc's Chief Executive Officer John McCarvel is bound for retirement soon. In addition, Blackstone Group LP will purchase $200 million worth of convertible preferred stock in the troubled plastic clogs maker, according to Bloomberg Businessweek.
In a statement, the Niwot, Colorado-based shoemaker said it will use the funds to up its stock buyback to $350 million. McCarvel is scheduled to step down from his position around April 30, the report detailed.
Chief financial officer Jeff Lasher explained in a statement: "We've been unable to repurchase stock while negotiating this transaction, but we now expect to do so beginning in the first quarter of 2014."
Lasher also said the buybacks will decrease Crocs' publicly traded stock by around 30%, the report added.
According to the statement, the company's board has started an outside search for the replacement of McCarvel. Crocs also said further restructuring charges may be done in the following year, Bloomberg Businessweek reported.