Polished.com Inc (POLCQ)

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[part 2] "The problem, Kanen says, is leadership. The company [GOED] recently replaced CEO Doug Moore, who oversaw the decline, with Fouerti, who Kanen supports. But the board members that hired Moore remain.

Those same board members were also on duty when leadership made the decision in May to sell shares — well below market value — to raise money for the acquisition, sending the share prices tumbling. A few days later, the company gave Moore a raise and $150,000 bonus.

“They’ve demonstrated the ability to consistently make bad decisions,” Kanen said. He proposed replacements from CarParts.com and other successful companies.

Build-A-Bear is in better shape. Surging consumer spending driven by government stimulus fueled some of the best quarters in company history in the first half of 2021. The share price has more than tripled since Jan. 1.

But it’s still about half as high as it was in its mid-aughts heyday, when the company could rely on its shopping mall storefronts. It posted a net loss for the past decade. And while executives talk about parlaying the pandemic bump into more permanent growth, Kanen is skeptical. He said in his letter that despite making $20 million since John took the top job in June 2013, revenue for the past 12 months was 10% lower than it was in her first full year.

"Kanen wants the company to partner with chains like AMC Theatres and Chuck E. Cheese to set up stores within stores and multiply its reach with little cost. He also wants a pet toy line to sell at PetSmart and Petco, which he thinks could add $50 million a year in revenue — a 10% bump from 2019’s haul. And he wants leadership to try something like NFTs, the digital collectible items that exploded in popularity among cryptocurrency enthusiasts earlier this year.

John told Kanen in an earnings call last month that the company is working on a pet toy plan and is in the process of upgrading its online ordering experience, another thing he wants to see.

Kanen hopes it’s true. If John follows through, he thinks the company could see big gains.

But if she doesn’t, within about a year, he’ll be calling for a new CEO."

https://www.stltoday.com/business/local/the-status-quo-is-unacceptable-activist-investor-targets-build-a-bear-goedekers/