Sycamore Partners acquires mall goth retailer
Sycamore Partners has acquired mall- and Web-based specialty retailer Hot Topic and its Hot Topic, Torrid and Blackheart concepts for approximately $600 million.
"Hot Topic and Torrid are both leaders in their categories, and we are excited to have both brands as part of our portfolio," said Stefan Kaluzny, managing director of Sycamore Partners. "Sycamore Partners is very pleased to have the opportunity to partner with Lisa Harper and her team to invest in the continued development of both the Hot Topic and Torrid retail brands."
"We are very happy to partner with Sycamore Partners. Their knowledge and expertise in the consumer and retail markets is precisely what we need to optimize both the Hot Topic and Torrid brands," added Lisa Harper, CEO and chairman of the board of Hot Topic.
As a result of the merger, the company's common stock is no longer listed for trading on the NASDAQ Global Select Market.
Guggenheim Securities acted as financial adviser to Hot Topic and Cooley LLP acted as its legal counsel. Winston & Strawn LLP and the Law Offices of Gary M. Holihan, P.C. acted as legal counsel to Sycamore Partners.
The Hot Topic transaction is the fourth investment by Sycamore Partners, which has more than $1 billion in capital under management. Previous transactions include the acquisition of a controlling interest in Mast Global Fashions from Limited Brands, the formation of Pathlight Capital and the acquisition of the Talbots.
The company operated 618 Hot Topic stores in all 50 states, Puerto Rico and Canada; 190 Torrid stores, 5 Blackheart stores, and 3 e-commerce sites.