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  Ocean Minded sandals - Shop-eat-surf file photo

Crocs executives officially commented on the closing of its Ocean Minded business Monday afternoon during an earnings conference call.

SES reported earlier this month that Ocean Minded was terminating the contracts of team riders and telling athletes that the San Clemente office was being shut down and that employees were being laid off.

Crocs executives said Monday that the company has closed Ocean Minded as an independent brand and consolidated key products into the core Crocs line.

The move is part of a larger Crocs strategy to eliminate non-core product development activities and investments, President Andrew Rees said. Crocs has also closed its Golf division.

Crocs will be liquidating Ocean Minded inventory in the fourth quarter, which will negatively impact Crocs gross margin, executives said.

Ocean Minded started in San Clemente, Calif. in 1996. The brand promoted an environmental message and the Southern California ocean lifestyle, and sponsored many male and female athletes.

Crocs acquired the company in 2007 for $1.75 million in cash, plus a potential earn-out of up to $3.75 million based on Ocean Minded hitting certain earnings targets over a three-year period.