Tag Archives: Sycamore Partners

Business, Finance, Occupation & Industry

Law Firm Brower Piven Announces Investigation of Hot Topic, Inc. Going Private Transaction

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By Business Wirevia The Motley Fool

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Law Firm Brower Piven Announces Investigation of Hot Topic, Inc. Going Private Transaction

STEVENSON, Md.–(BUSINESS WIRE)– The securities litigation firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty to current shareholders of Hot Topic, Inc. (“Hot Topic” or the “Company”) (NAS: HOTT) and other violations of state law by the board of directors of Hot Topic relating to the proposed acquisition of the Company by private equity firm Sycamore Partners. The firm’s investigation seeks to determine, among other things, whether Hot Topic‘s board of directors breached their fiduciary duties by failing to maximize shareholder value.

As stated in the press release announcing the proposed transaction, Hot Topic shareholders will receive $14.00 in cash for each share of Hot Topic they own. The transaction is currently being valued at $600 million. According to Yahoo! Finance, the high analyst price target is $16.40 per Hot Topic share.

If you currently own common stock of Hot Topic and would like to learn more about the investigation being conducted by Brower Piven, you may email or call Brower Piven, who will, without obligation or cost to you, attempt to answer your questions. You may contact Brower Piven by email at hoffman@browerpiven.com, by calling (410) 415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and other class action cases of over 60 years.

Brower Piven, A Professional Corporation
Stevenson, Maryland
Charles J. Piven, 410-415-6616
hoffman@browerpiven.com

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The article Law Firm Brower Piven Announces Investigation of Hot Topic, Inc. Going Private Transaction originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Hot Topic Buyout Prompts Law Firm Investigation Seeking More Money, Information for Hot Topic, Inc.

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By Business Wirevia The Motley Fool

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Hot Topic Buyout Prompts Law Firm Investigation Seeking More Money, Information for Hot Topic, Inc. Stockholders, Announces Deans & Lyons Law Firm

DALLAS–(BUSINESS WIRE)– Securities lawyers at Deans & Lyons announced an investigation against the board of Hot Topic (NAS: HOTT) due to a buyout by Sycamore Partners for $14.00 per share. Concerned Hot Topic stockholders are encouraged to contact attorney Hamilton Lindley at 877-819-8033 or hlindley@deanslyons.com about their rights and remedies.

“At least one analyst has a target price of $16.40 for HOTT stock,” said Lindley, a securities lawyer with the firm. “Our investigation focuses on whether a shareholder lawsuit is required for the Hot Topic stockholders to receive the highest price reasonably available and the disclosure of important information in this acquisition,” Lindley said.

Deans & Lyons has significant experience representing shareholders in securities lawsuits nationwide at no cost to them. HOTT stockholders – or anyone with knowledge about this acquisition – should contact lawyer Hamilton Lindley at hlindley@deanslyons.com or 877-819-8033 with questions or concerns.

Deans & Lyons LLP
Hamilton Lindley, 877-819-8033
Phone: 214-736-7861
Fax: 214-965-8505
www.deanslyons.com

KEYWORDS:   United States  North America  Illinois  Texas

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The article Hot Topic Buyout Prompts Law Firm Investigation Seeking More Money, Information for Hot Topic, Inc. Stockholders, Announces Deans & Lyons Law Firm originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Hot Topic Earnings: An Early Look

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By Dan Caplinger, The Motley Fool

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Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Hot Topic is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed kneejerk reaction that turns out to be exactly the wrong response to the news.

Teen retail is one of the most cutthroat businesses out there, and Hot Topic has had its trials trying to stay on top of the space. But a recent buyout offer is changing the game for the company and its shareholders. Let’s take an early look at what’s been happening with Hot Topic over the past quarter and what we’re likely to see in its quarterly report on Wednesday.

Stats on Hot Topic

Analyst EPS Estimate

$0.27

Change From Year-Ago EPS

29%

Revenue Estimate

$228 million

Change From Year-Ago Revenue

8.6%

Earnings Beats in Past 4 Quarters

3

Source: Yahoo! Finance.

Will Hot Topic be trendy this quarter?
Analysts have gotten more optimistic about Hot Topic‘s earnings prospects in the past few months, raising their calls for the holiday quarter by $0.02 per share and adding a nickel to fiscal 2014 projections. But the stock has absolutely soared, rising more than 40% since early December.

The most important recent news for Hot Topic came just last week, when the company said that private-equity firm Sycamore Partners planned to buy the company for $590 million, or $14 per share. That price represented a 30% premium to where Hot Topic traded before the offer.

With a buyout offer on the table, Hot Topic‘s quarterly results may seem irrelevant. Yet in preliminary results, the company posted a much better quarter this time around compared to the year-earlier period, with same-store sales rising 2.6% on an 11% jump in net sales, according to preliminary estimates released back in February. In particular, the company’s Torrid stores have produced a lot of the company’s growth, reversing year-ago negative comps with a strong 5.4% performance this quarter.

Moreover, Hot Topic has tried to latch onto new fashion trends. With lingerie becoming more popular among younger women, Hot Topic‘s new Blackheart line will go up against Limited Brands‘ Victoria’s Secret, which has dominated the intimates space. American Eagle Outfitters has made a similar play with its Aerie line, but with a customized marketing strategy, Hot Topic may be able to appeal to a different target audience than Limited Brands and American Eagle Outfitters typically serve.

In its quarterly report, news of the acquisition will be overwhelming, but pay attention to the fundamentals. You never know when a deal might fall through, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Law Firm Kirby McInerney LLP Investigating Potential Claims on Behalf of Hot Topic, Inc. Shareholder

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By Business Wirevia The Motley Fool

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Law Firm Kirby McInerney LLP Investigating Potential Claims on Behalf of Hot Topic, Inc. Shareholders

NEW YORK–(BUSINESS WIRE)– Kirby McInerney LLP is investigating potential claims against the Board of Directors of Hot Topic, Inc. (“Hot Topic” or the “Company”) (NAS: HOTT) related to the proposed acquisition of the Company by Sycamore Partners, a private equity firm. Under the terms of the agreement, Sycamore Partners will acquire Hot Topic for a cash purchase price of $14.00 per share, valuing the Company at approximately $600 million.

The investigation concerns whether the Hot Topic Board of Directors violated its fiduciary duties by agreeing to this transaction and whether the proposed $14.00 per share consideration adequately values Hot Topic shares. The offer price represents a 30% premium to the closing price of Hot Topic shares the day prior to the announcement. At least one analyst has a price target for the Company’s stock of $16.40 per share, 17% above the offer price.

If you are a Hot Topic shareholder and wish to obtain additional information, please contact J. Brandon Walker, Esq. by email at bwalker@kmllp.com, by telephone at (212) 699-1145 or (888) 529-4787, or by filling out this contact form.

Kirby McInerney LLP is a New York-based law firm concentrating in securities, shareholder, whistleblower, antitrust and consumer litigation. For additional information, please go to www.kmllp.com.

Kirby McInerney LLP
J. Brandon Walker, Esq., 212-699-1145
888-529-4787
bwalker@kmllp.com

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The article Law Firm Kirby McInerney LLP Investigating Potential Claims on Behalf of Hot Topic, Inc. Shareholders originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Teen Retailer Hot Topic Goes Private

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By 24/7 Wall St.

Clothes on hangers

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Private equity firm Sycamore Partners has reached an agreement to take teen apparel retailer Hot Top Inc. (NASDAQ: HOTT) private for $14 a share in cash, or a total of about $600 million. The price reflects a premium of about 30% to Hot Topic‘s closing price last night.

The deal is structured as a one-step merger and Hot Topic will be the surviving entity. The deal is subject to shareholder and regulatory approval. Last May Sycamore acquired Talbot’s in a deal worth about $369 million.

Lisa Harper, Hot Topic‘s CEO, said:

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.

Harper and Becker Draper Management LP hold 8.9% of Hot Topic‘s stock and have already agreed to support the transaction.

Shares of Hot Topic are up 29.2% at $13.49 after setting a new 52-week high of $13.95 earlier. The prior 52-week range was $8.25 to $11.82.

Filed under: 24/7 Wall St. Wire, Apparel, Mergers and Buy Outs, Retail Tagged: HOTT

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Source: FULL ARTICLE at DailyFinance