The company said it has hired advisers to explore a full range of strategic alternatives. This was well received by Build-A-Bear’s investors and shareholders as it is showing the company is looking long term.
CEO Sharon Price John didn’t go into details about what the future of Build-A-Bear might be. She said more information will be shared when necessary. This started rumors that the company might be seeking for a new owner. Nothing along this case has been said though.
Instead John said the exploration of new strategies for the company is the next phase of the multiyear turnaround which Build-A-Bear began in late 2012. “This is a move from a position of strength,” John said, adding “it could take many directions.
Since investment firms controlled by Cannell bought a more than 8 percent stake in Build-A-Bear last November, Jackson, Wyoming-based Cannell Capital has pushed for board changes and a buy-back of shares through an auction.
We won’t bore you with all the financial things and board meetings. There will be changes coming to the company, that’s for sure. It will try to keep them in house though. What you will probably notice is that some of the Build-A-Bear around 400 stores will be closed and new ones will be opened at better locations. More of the old stores will be converted to the new Discovery layout Build-A-Bear introduced last year.
It will be interesting to see what else the company has in mind for its new strategy. Currently there’s no timetable on the development of said strategy. Build-A-Bear doesn’t want to rush things and wants to make a sensible long term strategy. So stay tuned for more as it becomes available.