Punk rock/Goth inspired retailer Hot Topic just landed a huge deal, getting bought by the private equity firm Sycamore Partners, owners of brands like Talbots, for $600 million. Hot Topic shareholders will get $14 a share as part of the deal, which is a whopping 30% above the closing price yesterday, March 6, 2013.
According to Lisa M. Harper, Hot Topic Chairwoman and CEO, “We are pleased that this transaction will allow us to deliver positive results for our shareholders. In addition, we are very excited about the future growth for the company and know that Sycamore Partners will provide great resources and expertise to us as we operate as a private company.”
According to Harper, she plans to return Hot Topic to its “edgy, dark, and sexy core.” As we’ve quantified in our Youth Culture Studies, Hot Topic is a favored retailer among 13-25-year-olds not only for their music-inspired apparel and merch, but also accessories, music, and footwear. (For more information on Hot Topics’ rankings among youth culture, see our Spring Youth Culture Study 2013).
Hot Topic also launched a lingerie label called Blackheart which is already a huge hit with the teen marketplace. However they are mostly known for key licensing deals with various movies and bands. Hot Topic already has deals inked with Batman and the huge sensation The Hunger Games, which is clearly following in the footsteps of attracting the next generation of would-be Twilight fans.
Torrid, Hot Topic’s stores for plus-sized teens continues to expand adding to the growth of the brand over the past 2 years. Hot Topic now has 800 stores.