May 05, 2021 activistcompany

Kanen Wealth Management/ Philotimo fund increased its stake after securing a Board seat in Build-A-Bear Workshop

Key Summary: Kanen Wealth Management/Philotimo Fund disclosed a 9.7% stake on March 26, 2019, and entered a cooperation agreement with the company on July 26, 2019, resulting in a board appointment. By September 2020, their stake had decreased to 3.8%, but it later increased to 6.32% by May 2021. Solas Capital Management revealed a 9.6% stake on November 12, 2020, before reducing it to 3.1% by January 2021. Cannell Capital disclosed an 8.18% stake in November 2015, pushed for board changes, and increased its stake to 6.08% in February 2018, later reducing it to 4.3% in May 2019.

Market Cap: $131 million| Build-A-Bear Workshop, Inc. operates as a specialty retailer of plush animals and related products. It operates in three segments: Retail, International Franchising, and Commercial.

Kanen Wealth Management/ Philotimo fund

On March 26, 2019, Kanen Wealth Management/Philotimo Fund disclosed a 9.7% stake, expressing intentions to discuss board representation for stockholders and value creation. On July 26, 2019, the company entered a cooperation agreement with Kanen, resulting in the appointment of one representative to the Board. On September 23, 2020, Kanen reported a reduced stake of 5.5% and noted that David Kanen resigned from the Board on September 8th. By September 28, 2020, their stake further decreased to 3.8%. However, on March 4, 2021, Kanen increased its stake to 5.13%, followed by another increase to 6.32% on May 3, 2021.

Solas Capital Management, LLC

On November 12, 2020, Solas Capital Management revealed a 9.6% stake in the company and disclosed ongoing discussions with management and the Board regarding business, operations, assets, and future plans. By January 29, 2021, Solas Capital Management reduced its ownership to 3.1%.

Cannell Capital

On November 17, 2015, Cannell Capital disclosed an 8.18% stake, urging the Chairwoman to appoint Mr. Charles M. Gillman or other candidates to the Board and to initiate a tender offer for $40 million or more at prices between $12 and $13 per share. On February 9, 2016, Cannell nominated two board candidates, and by February 23, 2016, the company appointed two outside members to the board. On March 31, 2016, Cannell (holding 5.09%) criticized the board's governance practices in a letter, expressing no confidence in them. Cannell increased its stake to 6.08% on February 22, 2018, up from 3.71% in May 2016. On April 2, 2019, Cannell (holding 5.66%) voiced concerns about the misalignment of interests between the company's owners and its Board, noting the lack of board member share purchases in two years. Finally, on May 22, 2019, Cannell reduced its stake to 4.3%

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