Build-A-Bear Workshop Surges After Embarking on Strategic Reviewby
Build-A-Bear Workshop Inc. surged as much as 8.7 percent after announcing plans to pursue strategic options, a sign the toy company may seek a buyer.
The board authorized a review of Build-A-Bear’s “full range of strategic alternatives,” without setting a timetable on the deliberations, the St. Louis-based company said in a statement on Tuesday. Guggenheim Securities LLC will serve as financial adviser, while Bryan Cave LLP will offer legal counsel.
Investors cheered the move, which followed disappointing financial results. Build-A-Bear posted 22 cents a share in earnings during the first quarter, well short of the 38 cents analysts had predicted. The nearly 20-year-old company, which lets kids assemble teddy bears and other plush toys inside workshops, has about 400 stores worldwide.
Build-A-Bear’s stock climbed as high as $13.76 in New York on Tuesday, the biggest intraday gain since Feb. 16. The company has a market value of about $215 million