Hot Topic, Inc. (HOTT) Itself a Hot Topic

Los Angelas, CA -- (SBWIRE) -- 03/07/2013 -- Hot Topic, Inc (NASDAQ:HOTT) said Thursday it agreed to be acquired by investment firm Sycamore Partners for about $592.4 million in cash.

Shares shot up 29 percent, hitting a six-year high, in morning trading.

Sycamore is paying $14 per share for the teen retailers, 30 percent above the City of Industry, Calif., company's closing stock price Wednesday.

Hot Topic's shareholders still have to approve the deal. All of Hot Topic's directors voted for it.

CEO Lisa Harper said that they are very excited about the future growth for the company and know that Sycamore Partners will provide great resources and expertise to them as they operate as a private company.

Becker Drapkin Management, an investment firm and Hot Topic's largest shareholder with 8.4 percent of shares, also supports the deal.

Hot Topic, Inc (NASDAQ:HOTT) runs its namesake stores as well as the Torrid chain, a plus-size brand. It's also testing a new store, Blackheart, which offers beauty products, lingerie and accessories. The company has about 800 stores in North America.

Hot Topic carved out a niche for itself selling music t-shirts and Twilight clothing and accessories. After taking a hit from the recession, it began closing unprofitable stores, changing its product lineup and shuttering its music download and social networking website. Sales started rising again last year after a long slump, and analysts expect a profit for the year that ended in January after two straight annual losses.

Hot Topic reports its results for its fiscal fourth quarter and year next week.

Shares rose $3.13 to $13.88 during morning trading, peaking earlier Thursday at $13.95, the highest price since January 2007. The stock had been up about 7 percent over the past 12 months through Wednesday's close.

How Should Investors Trade HOTT After The Recent Volatile Moves? Find Out Here

Disclaimer
Neither HotPennyStockNews.com nor its owners, operators, affiliates or anyone disseminating information on its behalf is registered as an Investment Advisor or broker dealer in any jurisdiction whatsoever and none of the information provided by HotPennyStockNews.com, owners, operators, affiliates or anyone disseminating information on its behalf should be construed as investment advice or an investment recommendation. HotPennyStockNews.com makes no recommendation that the securities of the companies profiled should be purchased, sold or held by individuals or entities that learn of the profiled companies through HotPennyStockNews.com. Investing in securities is speculative and carries a high degree of risk and no investment should be made unless you can afford to lose your entire investment. It is possible that an investor's entire investment may be lost or impaired due to the speculative nature of the companies profiled. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein..

Contact:
hotpennystocknews.com
info@hotpennystocknews.com