Build-A-Bear drops doll stores
By Staff -- Gifts and Dec, 9/17/2008 8:27:00 AM
ST. LOUIS—Build-A-Bear Workshop is ending its foray into make-your-own dolls, announcing plans yesterday to close its nine Friends 2B Made concept stores.
The retailer expects to complete the move by the end of the third quarter of fiscal 2009, however it said the specific timing of the closures is dependent on finalizing third-party agreements, and is therefore subject to change.
“We have been pleased with the enthusiastic guest response to our Friends 2B Made products and locations, which makes our decision to close these locations even more difficult,” said Maxine Clark, Build-A-Bear Workshop’s chairman and chief executive bear. “However, to take this concept to the next level would require additional investment and the development of an online presence—which today is required to be a viable children’s-entertainment brand. With the slowdown in consumer spending, particularly for discretionary products, we believe the best strategic course for the company is to continue to focus our primary efforts on building Build-A-Bear Workshop … We will also continue to focus our efforts on the successful guest response we are receiving to our virtual world buildabearville.com. This plan allows us to address our goal of improving our sales while focusing on and investing in brand building strategies for long-term growth.”
Build-A-Bear anticipates a pre-tax charge related to the store closures of approximately $2.8 million, or $0.09 per diluted share, in the third quarter of fiscal 2008. This charge is primarily related to the non-cash impairment of store assets. In addition, the Company expects to incur pre-tax charges of approximately $1.9 to $2.3 million during the fourth quarter of fiscal 2008 and through the third quarter of fiscal 2009. The majority of these charges are attributable to potential lease termination costs and other potential costs associated with the closure plan.
In addition to closing the nine Friends 2B Made locations, the company will remove Friends 2B Made products from separate display fixtures in approximately 50 Build-A-Bear Workshop stores and discontinue product sales at www.friends2bmade.com.
Of the nine Friends 2B Made locations, all but one of is inside or adjacent to a Build-A-Bear Workshop store. The stores are located in Boston, Columbus, Ohio, Minneapolis, Myrtle Beach, S.C., New York, Ontario, Calif., Pittsburgh, St. Louis and Temecula, Calif. The company plans to convert several of the locations to expanded Build-A-Bear Workshop stores in 2009, at an expected cost of $2 million.
Plans call for the retailer to offer all Friends 2B Made associates similar positions at nearby Build-A-Bear Workshop store locations.
We were so very dissapointed that you completely discontinued your dolls. i understand scaling back to cut your losses, but you should have the large dolls that fit into the regular bear clothing and just offered them along with the animals in the same area...seems like a pretty simple idea and everyone is happy. We did not make a purchase except for an outfit for the doll my daughter already has. We would have bought 2 more dolls and outfits and I am sure many others would too. Just offer maybe 5 dolls...black, hisp./asian w/ med skin, blonde, red hair, brown hair. The only different accessory you would need to offer is shoes, but all outfits already fit.
Felicia Russell - 2010-07-14 12:04:54 EDT
I was very sad to find out your closing doll stores, im coming to new york for the 1st time and was going to deseign a doll for bliss my grandaughter, she has bears so i thought a doll would be different.Im visiting 3rd dec would there be any chance you will still have some left in your bear store on 5th av.
Mrs J. Roberts - 2009-11-21 09:30:00 EST
-
Build-A-Bear Workshop ends Q3 in red
Oct 17, 2008 -
After '09 loss, Build-A-Bear positions for growth
Feb 19, 2010 -
CSS Industries Closing Memphis Factory
May 25, 2011 -
Build-A-Bear's comps crumble in Q2
Jul 25, 2008 -
Build-A-Bear tallies Q1 loss
Apr 30, 2009
Featured Company
-
Brandwise Inc.
Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more
VIEW ALL GALLERIES
