Build-A-Bear Workshop, Inc. (NYSE:BBW) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 of this Current Report on Form 8-K, U.S. Bank and the Company agreed to amend the Credit Agreement. There is currently a $1.0 million letter of credit issued under the Credit Agreement. The Company does not expect to otherwise access the Credit Agreement prior to its expiration on September 30, 2020 because (i) the Company anticipates that its cash balance in North America will be more than $5 million and (ii) given its trailing twelve-month financial results and anticipated operating losses in its second fiscal quarter due to ongoing store closures and normal seasonal fluctuations, the Company does not expect to meet the fixed charge coverage ratio that is required as a precondition to obtain additional borrowings under the amended Credit Agreement, and therefore would not meet the conditions described in items (i) and (ii) in the 9th bullet of Item 1.01 above. Nevertheless, the Company believes that its current cash balance, along with the actions taken as discussed in its Annual Report on Form 10-K, filed April 16, 2020, will provide it with sufficient liquidity for the next 12 months. The Company continues to explore other options to access alternative liquidity sources which may include other lenders, various government assistance programs and monetization of existing Company assets, including the Company-owned warehouse in Ohio and inventory, and will continue to consider other actions to improve the Company’s cash position, including but not limited to implementing further selling, general and administrative expense reductions, foregoing or delaying capital expenditures, and working with landlords to negotiate lease structure and payment terms.
This Current Report on Form 8-K contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements in this report not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this report are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things: statements regarding the Company’s goals, intentions, and expectations; business plans and growth strategies; estimates of the Company’s risks and future costs and benefits; forecasted demographic and economic trends relating to the Company’s industry; the impacts of the COVID-19 pandemic, and other risk factors referred to from time to time in filings made by the Company with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. The Company disclaims any intent or obligation to update these forward-looking statements.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
BUILD A BEAR WORKSHOP INC Exhibit
EX-10.1 2 ex_188608.htm EXHIBIT 10.1 ex_188608.htm Exhibit 10.1 TWENTY-FIRST AMENDMENT TO LOAN DOCUMENTS THIS TWENTY-FIRST AMENDMENT TO LOAN DOCUMENTS (this “Amendment”) dated as of May 28,…
To view the full exhibit click here
About Build-A-Bear Workshop, Inc. (NYSE:BBW)
Build-A-Bear Workshop, Inc. is primarily a specialty retailer offering a make your own stuffed animal interactive retail-entertainment experience. The Company’s segments include direct-to-consumer (DTC), international franchising and commercial. The DTC segment includes the activities of Company-owned stores in the United States, Canada, the United Kingdom, Ireland and Denmark, and other retail delivery operations, including its e-commerce sites and temporary stores. The international franchising segment includes the licensing activities of its franchise agreements with store locations in Europe, Asia, Australia, Africa, the Middle East and Mexico. The commercial segment markets the naming and branding rights of its intellectual properties for third-party use. Its retail stores offer various merchandise, including over 30 different styles of animals to be stuffed, sounds and scents that can be added to the stuffed animals, and a range of clothing, shoes and accessories, among others.
