Build-A-Bear Australia has entered voluntary administration this week. The company will also close 10 of its stores in Australia, ToyNews reports.
“We have an incredibly dedicated team, and have established a brand that resonates with consumers of all ages. The company will continue to focus on bringing smiles and a unique experience to our guests”, says Gavin Port, Build-A-Bear Australia’s chief executive.
He adds that the main challenges are the downturn for the fiscal year 2018, the increased operating costs and other stuff like wages, rent and so on. Another point of woes is the looming Brexit. With no clear sight of what’s going to happen, this puts severe strain on countless of companies worldwide.
This results in an overall downturn for the global revenue of Build-A-Bear. “In North America, our largest overall market, we had a low single-digit sales decline and modest profit on an adjusted basis. However, the waning consumer confidence related to Brexit and new privacy laws that inhibited consumer communication in our largest international market, the United Kingdom, resulted in disappointing financial results”, Build-A-Bear’s CEO Sharon Price John says.
Hopefully things will start shaping up, but with Brexit still in shambles it may not be so easy.