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Well, it's not cheap, and it's going to build you a ranking off one directory link. It won't hurt, may even help a bit, but without some kind of perspective of where you are and where you want to be, it's hard to recommend as the best bang for your buck.
Any more info on your current situation? What else are you doing to help get more traffic? What is the business and competition like?
Hey
Sometimes certain sites do manage to 'get away with it' for a bit longer but really, from a very quick look at their link profile, it looks super dodgy so I can't see them getting a free ride for much longer.
Really, I would forget about these guys, be happy that their is no longevity to their approach and that their days are numbered and focus on making the site you are working on as good as it can be in the meanwhile.
I know that is not an answer as such, but I doubt anyone outside of Google could give you a better one. You could get an fairly comprehensive seo audit done on their site and links etc but what would it achieve? You can't play the numbers game against this kind of profile so I would not even bother.
As it goes, it can be surprising how few real links you need to compete with this kind of profile and it may be that the competition in this sector are all just running the same weak strategies.
Hope that helps!
Marcus
If you have a budget, it won't hurt, but those look like big terms so working with bloggers, guest blogging, tons of interesting jean related content is going to be more scaleable. I wonder if you could come up with some kind of really groovy infographic driven posts to try and pick up some sharing of that content, maybe a history of mens jeans or some such...
Also, there is no shame at picking around the edges and working into those big terms over time + having a strong incentive for people to connect socially so you can push offers at them.
Best of luck! 
Hey
We specialise in SEO Audits which can cover a range or problems (including penalty analysis) but it can also be something that you can do on your own. Certainly, there is a lot of moving parts and it depends on the complexity of the site, the history and a number of other variables.
So, for starters, can you provide a URL for some feedback? Additionally, can you provide any other details?
As a starting point that should enable you to get some feedback from the community and the problem may be quite apparent and tied to known dates with algorithm updates.
First up take a look at your analytics and then compare any obvious drops to this:
http://www.seomoz.org/google-algorithm-change
Then, if you find a date that tallies up, take a look at your traffic for two weesk before and after the drop. Check out search terms, landing pages and anything else important to see what was most effected and build a list of terms and pages to start your further analysis.
Then, with http://www.opensiteexplorer.org/ you can examine these individual pages and anchor text terms and look for obvious patterns and problems with external elements.
If, it is more of a panda type penalty then you can use services like copyscape to get an idea of what is going on from a duplicate content perspective.
Ultimately, there are so many permutations and possibilities that without a URL and some more info it's near impossible for anyone to give you any more targeted feedback.
Certainly though, if you would like someone to take a look, give me a shout and I can at least give you some quick feedback. Other folks of note from this forum are Ryan from Vitopian and Dr. Marie who are both well versed with penalties and good, honest folks.
Hope that helps
Marcus
Hey Henry
I have just taken a quick look at your link profile in open site explorer and I think your agency is being wildly optimistic. Simply, adding more links with a wider variety of keywords is simply not going to work. Likewise, if they are using the same historical approaches to add the links then they are likely to dig you an even bigger hole.
There is only one well documented case of recovery I am aware of being the WPMU site and they were fortunate in that they could remove a huge swathe of links in one fell swoop. Looking at your link profile, you don't have any such options.
Some very quick statistics here.
1400 linking domains
Then, anchor text is only part of the picture, looking at the sites that are linking to you, they are pretty weak in general. Link farms, content farms, article sites - it's a real mess! In fact, I have not found one good to honest link that is not from a spun, barely literate article.
So, what do you do? Well, in my mind, the first thing you should do is clean up the mess and see if you can bounce back. But you have some real work to do here, no doubt about that.
I wish I could give you happier news but when it comes to applying the phrase 'toxic link profile' then your link profile is just that. Lots and lots of, and I hesitate to even use the word, 'articles' with links to your site but they are clearly outsourced webspam articles written by someone who's first language was not english.
It's very hard to advise the exact course of action, but certainly, just 'throwing some more links at it' is not the way to go here. Any work you do should be to clean up but looking at your link profile, I have looked at about 100 links and not found one that was not a 100% total webspam.
The fact of the matter is, your site, and your marketing is exactly the deliberate manipulation of search results which Google has been targeting so it may be that starting again is your best approach. Certainly, if out of that 1400 links, if there are such a small percentage of real, honest links, then that may be your only real choice.
Google has targeted three things of late:
Unfortunately, your site is (was) propped up by artificial links from web spam on link farms - so to dig your way out of this hole could be tough and may leave you with little actual link equity to make it worthwhile.!
Sorry to be the bearer of bad news so don't shoot the messenger!
Marcus
Hey Bob
In this kind of instance we can almost defer to common sense.
If you sell 100 products and have 5 categories those categories are likely important pages - important for a user on your site and important for users in search. Having a consistent internal navigation helps indicate to the search engines that these pages are important enough to link to on every page. It also ensures site users can jump from category A to category B. Good for people, good for search engines - win win.
In an ideal world we want a nice consistent hierarchy with your persistent navigation and URLs all being well aligned.
Nav
URL Structure
/
/products/
/products/category-a/
/products/category-b/
/products/category-c/
/contact/
Then any other elements can also line up - page titles, meta descriptions, breadcrumbs, h tags etc.
Ultimately, this is not any kind of SEO voodoo but rather the nuts and bolts of a user friendly and search friendly site.
Hope that helps!
Marcus
Quality always wins over quantity, or at least that's what I tell my wife. 
Hey
This kind of thing will never be quick and there are many factors to consider
At a guess (working with what you have given) it just sounds like a typical penguin problem: lots of spammy links with over optimised anchors. Damage to the site for very specific pages / keywords whilst some others do okay still.
From experience I would manage your clients expectations and let them know that it took a long time to get into this mess during which they benefited more than they likely deserved to, therefore, it will likely take a long time to clean this up. Additionally, these bad links may have played a big part in that top spot for the term fabric so who is to say where they will sit when all negative equity is removed.
Google has also stated that some sites simply can't be recovered and starting again with a new site on a new URL is the best approach. For brands this is often not so easy so it's hard to advise without more details on the brand as a whole. In your case, with the limited information I doubt this is the case but still you could be looking at an extended time period with maybe one or more likely a few penguin updates needed to get out of the hole.
Hope that helps!
Marcus
References
https://www.seroundtable.com/google-penguin-recovery-required-19115.html
Yep, I agree with all of this. Great content is just not enough. If you are going to write it you also have to spend twice as much time promoting it and if it is as good as you say, networking with people socially, allowing people to guest post at your site, guest posting, asking other people to promote it, they are all just part of the toolbox but whatever you do it has to be personalised to work in that specific space as there is no content marketing blueprint that works exactly the same for every site.
I work with a carpets company, everyone in that industry is just starting to get to grips with mobile phones, social media, guest blogging, forget about it but, there is no quality content out there so by putting it out there and doing some light promotion, that is doing the job.
each job is different.
Hey Max
"On-page sidenote: The content is somewhat thin, but original, and was not a hindrance for ranking first overall for the term between June 9 - June 20."
I think you have pretty much answered your own question here. The content is thin, supermodel thin, and there is little in the way of strong content across the site to prop these pages up.
They are unique, but not really, in that there are several pages designed as search engine landing pages that offer little in the way of new or useful content. The link profile is pretty weak and there is no other useful content on there.
Get some solid content on there, offer some value to site visitors, get some good links and improve these pages and you should bounce back.
This is just a quality issue, plain and simple.
No waving of the magic SEO wand here unfortunately, it's just a quality thing.
Marcus
Hey, I agree, Irving's suggestion is the better option all round if your going for the footer link.
Hey Suzanne
I did some very simple searching and found no glaring or obvious problems.
no obvious heavy external duplication
link profile does not look overly spammy
you rank for a range of page titles in reasonable positions (3 / 4 etc)
I think we likely have some internal duplication
Google this: "Our Organic Cotton comes from Texas Organic Cotton Marketing Cooperative (TOCMC), the largest organic cotton cooperative""
The competition has a whole bunch more links than you
There is not really any content beyond the product pages themselves (which seem to be well put together)
_* Caveat that this was a 5 minute look! _
I had a look at several pages and products and found you searching for page related terms so I am not sure you have a problem as such. Could you possibly provide a bit more information?
I find that you rank really well for a whole range of terms so if it is just some homepage terms it may be that a competitor is doing more marketing or that there is just more competition.
Would be interested to find out a little more or to dig into your analytics and see what is going on.
Hope that helps
Marcus
Nope, that should be totally fine, that is, unless your name is 'Quality SEO Services' or 'Cheap Toys'.
Take a look at the link profile of say Distilled.com - a big chunk of the anchor text is the two senior partners names. Likewise, my own site is the same.
Additionally, Penguin is keyword specific, so, it would never happen but if it did and you picked up a penalty for your name, would that even be that big of a problem?
I have a natural penalty for my name in that there is a far cooler and more interesting musician called Marcus Miller so I have absolutely no chance in hell of ranking 1st for my own name and rightly so as most people Googling 'Marcus Miller' are not looking for me, they are looking for my cool, M jazz composer, producer, and multi-instrumentalist alter ego (who also worked with Miles Davis).
Honestly, as long as you are adding value with your blog posts and keep using your name or nick name and don't do anything silly, then you have nothing to worry about and likely a lot to gain!
Hey David
I am seeing similar things in the UK and in most industries localisation has really been turned up in the last 12 months (and seemingly even more since penguin 2.0 / 4.0).
In most cases it seems this is a good thing and searching for the kind of business that would generally have a local intent returns local results. We also now see a 7 pack of local results directly after the PPC for a wide range of queries and business categories.
Now, if we search for the obvious ones: accountant, lawyer, builder etc it is almost always localised. No need for a city or town either as it uses the assumed location.
I think this is interesting in a number of ways
I tend to think that this will train people to search like this more and more and for many commercial terms traditional SEO will lose a lot of value. Obviously, search still has tons of opportunities for organic and content marketing but if this helps small local businesses get found more easily and further halts the tiresome tactics that have tainted this industry then it's all good in my mind.
We are having some great success with small companies with Local SEO, localised organic and region specific PPC campaigns and it's always nice to help the little man get found over the big national brand.
Marcus
Hey Brian
There is really no such thing as a bad strategy, just low quality and overly aggressive ones.
You want to win difficult links rather than build easy links and focus on quality over quantity. You want links from topically relevant sources and ideally, whilst you can build links, you want to inspire them if possible (easier said than done).
The usual strategies apply, write great content, network with other bloggers, try to get people talking about things that you do. Guest posting still has some legs, as does outreach but you need to have something for people to link to.
Guest posting seems to be something people are migrating towards as a safe strategy so it is worth pointing out that this is not a magic bullet approach, if you go low quality, it is really just article marketing so go after those hard to win links and sure, flesh it out with some good but not always triple A stuff but be careful with quality and anchor text ratios and you should be okay.
Some further thoughts on guest posting and anchor text ratios:
Safe Anchor Text Ratios for for Link Building
Hope that helps!
Marcus
Hey David
We don't tend to see a 7 pack for web design companies in the UK but we are seeing more and more localisation even in the standard organic results. A search for 'web design' shows local companies and is not a million miles away from a search for 'web design Birmingham' which is where I am based.
Same as my initial response though, I see this being primarily a good thing and most people searching for 'web design' or even one of the more traditional business categories will likely be looking for a local company and Google would want to best match the results to the intent of the search query and in this case, I think they are doing a pretty good job.
So, whether that is more localised organic results or more blending of 1 packs, 3 packs and 7 packs in amongst organic results (which are themselves seemingly more localised) this is a good thing that helps users and levels the playing field.
Hope that helps
Marcus
Hey Tyler
I have to disagree with most of the responses here to some extent. Link building as in, here is $100 get me 10 PR4 links is over but link earning is far from over.
Content, content, content - we have all heard that but too many folks put stuff out there that gets no links and very few social shares so developing a strategy that helps you identify the kind of content that gets linked to along with the actual people who do the linking and building a content + outreach strategy can be very effective.
Think about this:
Basically, the age old buying of links is dead and buried (good riddance) but there are still some very cool strategies revolving around content generation and the effective marketing of that content to a wider audience of people who will link to it.
Following a long term approach like this you also look to build a broader network of contacts in the social networks and blogger buddies. Once you get to this point, where you share their content, they share yours etc then picking up links should be easy.
I have a client that put out a fairly cool but ultimately pedestrian piece of content last week and picked up over 30 links to it from the Blogosphere. All highly relevant sites with readership so there is a referral value as well but could you imagine trying to buy these 30 links? Lets say you went with some fairly low rate guest posting service at say $100 per post you are looking at $3000 - if you are doing this each week then $12000.
So, whilst there was some initial pain and investment in content and strategy the return on the investment downstream is beyond compare when looked at in a pay X for a link approach. It is also pretty much unbeatable and hard to duplicate by your competition so if you want to play hard and can settle in for a six month + program then you can get some real benefit from working with someone with some real link building smarts.
Hope that helps buddy.
Marcus
Hey Kevin
From a simple perspective, this is perfect. There are tools that will take your blog post and push it out to twitter and facebook but ideally you want to do this manually so each post can be unique.
If your blog content drives inbound traffic and you can convert these folks to social media this will ensure they see more of your content on a regular basis and will build your reputation and credibility (assuming the content is solid).
Google+ can be interesting as well and your posts referencing your posts can contain a followed link and can themselves get indexed and returned in search results so don't neglect this fledgling network.
If you connect with your customers via LinkedIn you could also post a link to your articles there and again keep yourself in the mind of your clients and prospects all the more.
Ultimately though, it sounds as if you are doing the right thing. Build great content, build a readership, share with social.
Hope that helps.
Marcus
Hey Robert
As ever, it all depends but as a general rule of thumb you want consistent messaging throughout.
We are looking for consistency throughout:
If we go with the tired old green widgets example then:
The action we want the client to take is tightly aligned from keyword, to advert to landing page copy.
This approach can increase quality scores so give you better placement for less money and more importantly we don't want to pay people to visit unless they are as likely as possible to follow through to whatever our conversion goal is.
Hope that helps!
Marcus
It's easy to overcomplicate these things.
If it's relevant, quality and visible in search then go for it.
Hope that helps!
Marcus