Footwear brand Crocs has been granted an extension of its credit facility by the Union Bank of California. The facility was due to expire On March 31, but the bank has extended it until September 30.

Earlier this year, the comany’s auditors expressed doubts about its ability to continue after it invested heavily in expanding capacity just before the popularity of its colourful sandals began to dwindle.

Commenting on the latest development, Crocs president and chief executive, John Duerden, said: “We are pleased with this extension as it provides us the headroom necessary to complete our restructuring plans, realign our operations and refocus the Crocs brand.”