The Death of Crocs?

According to this article on MSNBC, the much loved and equally derided Croc may be on its way out. The company swung from a profit of $168.2 million in fiscal year 2007 to a loss of $185.1 million last year. In its annual report, Crocs said that an independent auditor expressed concerns about "conditions that raise substantial doubt about our ability to continue." Its stock price has plummeted 76 percent.

Why? The market is saturated due to the product's longevity, footwear is trending in new directions, the company was ramping up when its product's potential was flattening...all good points that logically add up to the decline. But why hasn't this company re-applied itself? You can't tell me there are no more good ideas for this material. It's nearly indestructible, anti-microbial and infinitely moldable. Here are three good categories to explore off the top of my head:

1. personal accessories: belts, bags, bookbags (builds on existing category)
2. bath and water products: storage, toys, yard (utilizes brand's capital as a kids product)
3. eating on-the-go: transitional products for car, stroller, school and office to manage, cool and protect foods (explores an entirely new category with the same primary purchaser, moms)