The Australian arm of global retail chain Build-A-Bear Workshop has been placed into administration, with two of the company’s three WA stores to close within weeks.

Its store at Lakeside Joondalup will continue trading but administrators Matt Sweeny and Gideon Rathner from Lowe Lippman have said Garden City and Carousel would go by the end of the month after they were appointed yesterday.

The move to call in administrators came just hours after Build-A Bear’s US parent company blamed the collapse of Toys ‘R’ Us and waning consumer confidence in the UK, its largest international market, in the wake of Brexit for a 7.5 per cent slide in revenue for the year ending February 2.

The first Australian Build-A-Bear store, which allows customers to create and customise their own teddy bear, opened in NSW in 2014 and grew to 30 shopfronts and in-store outlets across Australia.

Along with the WA stores, eight others are set to close over coming weeks but administrators said those that remain would continue to operate as normal and gift cards would still be honoured.

Build-A-Bear Workshop blamed the decision to call in administrators on higher operating costs, such as wages and rents and a fall in shopping centre foot traffic.

Company chief executive Gavin Port said Build-a-Bear Australia was working “diligently” on plans to combat those challenges.

“We have an incredibly dedicated team, and have established a brand that resonates with consumers of all age,” Mr Port said.

“We want to thank our entire team and our valued customers and suppliers who have been great supporters of the brand over the last 14 years.

“The company will continue to focus on bringing smiles and a unique experience to our guests.”

The Australian Securities and Investments Commission website said the first meeting of creditors will be held in Melbourne on March 22.