Build-A-Bear Hires Lehman to Consider Alternatives

Build-A-Bear Workshop, which sells customer-personalized stuffed animals, said Thursday it hired Lehman Brothers to help it consider strategic alternatives.

The news sent shares up $2.14, or nearly 10 percent, to $24.65 in premarket trading.

The company said it won't issue any new earnings guidance, nor update prior forecasts while the review is being conducted.

In a statement, Chairman and Chief Executive Maxine Clark said the company is still committed to expanding in North America to at least 350 stores and building its store base in Europe to 120 stores, as well as growing international franchising to 300 stores.

"That said, we also believe that we have an obligation to shareholders to consider a broad range of potential strategic alternatives that could further enhance shareholder value," Clark said.

Earlier this month, the company cut its second-quarter and full-year outlook due to poor same-store sales in North America.

Shares closed Wednesday at $22.51. The stock rose from a low of $20.20 last summer to peak at $32.08 in late November, but recently plummeted on the revised forecast.

Contact U.S. News


    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • Mad Money's Jim Cramer breaks down the theme of stealth technology stocks. Cramer says companies that are using proprietary technology to invent entirely new markets and then dominate those markets, fall under that category.

  • Mad Money host Jim Cramer knows it can be difficult to stick with a stock that is going lower but says if you've done the homework, and the story isn't wildly off the rails, then stay long.

  • Mad Money host Jim Cramer, outlines the most common emotionally driven investor mistakes and expresses why it is important to not let skepticism run away with you.