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31 Jan – 4 Feb 2018
The company has partially blamed its poor results on the collapse of Toys R Us and issues posed by Brexit in the UK.
Administrators for Build-A-Bear Australia, a franchised entity of the US company, were appointed yesterday (13th March). The company has 30 stores and other retail outlets across Australia, with 10 of those set to close over the next two weeks. The remaining stores will continue to trade normally, administrators say, and staff will continue to be paid normally. Gift cards will also continue to be honoured.
The reasons for the company’s collapse include increased operating costs, such as wages and rent, and a decrease in shopping centre foot traffic. In a statement, company chief executive Gavin Port said Build-a-Bear Australia was working “diligently” on plans to combat those challenges.
The collapse of the Australian arm comes after the US parent company issued its Q4 earnings report, revealing the business’ overall revenue was in decline. Though figures for the company’s Australian franchise were not revealed, revenue for the company’s European operations declined as much as 17%.