Build-A-Bear seeks New Chief

Build-A-Bear seeks New Chief

All is not well in the toy shop this Christmas.

Perennial children's party destination and once-hot IPO Build-A-Bear Workshop Inc. BBW +2.91% is looking for an executive who could replace founder and Chief Executive Maxine Clark in the corner office, amid a string of disappointing results, people familiar with the matter said.

Several major executive-search firms made their pitches for the assignment this week in New York, one person familiar with the matter said.

In screening the search firms, Build-A-Bear directors told recruiters that they are looking for Ms. Clark's replacement but left open the possibility that the newcomer could start out as her second in command, one of the people said.

Build-A-Bear said its board has been discussing succession planning for several months. Ms. Clark, who turns 64 years old next March, was involved in the discussions, the company said.

The company raised $150 million in a 2004 initial public offering, touting itself as the only national chain where you could "make your own stuffed animal." But investors have since knocked the stuffing out of the stock, which debuted at $20 a share.

In 4 p.m. trading Thursday on the New York Stock Exchange, the shares were off a penny at $3.78.

In late October, the company surprised investors by reporting a loss for the third quarter, as sales at outlets open at least a year slumped 11%. Revenue in the first nine months of the year fell to $262.8 million from $275.2 million a year earlier, and the company's loss for the period widened to $13 million from $8 million.

Ms. Clark said at the time that the results were disappointing. She cited tough comparisons with the chain's performance the previous year, when it was carrying Smurf toys, a limited-time offering tied to the 2011 movie "The Smurfs." The toys helped drive traffic to its stores. boosting sales.

Ms. Clark founded Build-A-Bear in 1997 after stints at Payless ShoeSource Inc., where she was president, and May Department Stores Co., now part of Macy's Inc. The St. Louis-based chain has since expanded to 400 retail locations world-wide, though it is now closing stores in the U.S.

If the company does decide to name a new CEO, that person will need to have a taste for cuteness. In news releases and securities filings, Ms. Clark is referred to as "chief executive bear." The company recently hired a new chief merchandise bear. Its general counsel is, yes, chief bearrister.

Source: WSJ