Crocs have been battling against a tide of cheap knockoffs and slow US consumer spending.
The company that makes Crocs shoes is getting a $US200 million ($226.3 million) bailout from a private equity fund, and its CEO is retiring.
Crocs shares peaked in 2007 as buyers snapped up the clogs known for being comfortable but ugly. But it hasn’t been able to add new products with the same popularity.
Its shares rose 10 per cent in premarket trading on Monday.
Crocs says it will use the money from Blackstone for a $US350 million share buyback.
As part of the deal, Blackstone gets two seats on the Crocs board. CEO John McCarvel is retiring and giving up his board seat around the end of April.
Crocs says fourth-quarter revenue will be at the low end of what it had expected, and its quarterly loss will match its worst prediction.
Crocs has been trying to revive its fortunes after consumers tired of its trademark clogs, knockoffs cut into sales and US consumer spending slumped. The Blackstone investment comes after Crocs attempted to find a buyer for the whole company, people familiar with the situation said in November.
"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," Jeff Lasher, chief financial officer, said in the statement. The buybacks will reduce publicly traded common stock by about 30 per cent, Mr Lasher said.
Mr McCarvel, who took the helm in March 2010, expanded the company's products to include other styles of footwear and opened new stores. The shares have declined 7.4 per cent this year in New York trading, compared with a 29 per cent gain in the Standard & Poor's 500 Index.
The board has begun an outside search for Mr McCarvel's replacement, according to the statement.
Calls to the offices of Crocs and Blackstone seeking comment weren't immediately returned outside U.S. business hours.
"We will focus on improving financial performance, particularly in the Americas and Japan, as well as enhancing our global retail execution," Thomas Smach, Croc's chairman, said in the statement. "We may moderate the pace of our investments in new retail stores."
Crocs said it expects fourth-quarter revenue to be at the low end of the previously provided guidance range of $US220 million to $US225 million. Diluted loss per share will probably be at the higher end of the US20¢ and US23¢ range projected, according to the statement. That compares with the US19¢-a- share loss average of nine analyst estimates compiled by Bloomberg.