Build-A- Bear is dropping Zhu Zhu Pets in the US, after market saturation lead to heavy discounting.
Firm swings to a loss following closure of its Friends 2B doll business.
The company announced on Tuesday that is will close its nine Friends 2B Made stores.
Build a Bear has announced second quarter results with increased European sales alongside a drop in the US.
Build a Bear Workshop is to open 25 news stores, including five in Europe.
Build-A-Bear Workshop has launched its own virtual world, Buildabearville.com.