Dive Brief:
- Spencer Spirit Holdings announced that it has signed an agreement with Sycamore Partners to acquire Hot Topic, Inc. and its portfolio, according to a company press release. Financial terms of the deal were not disclosed.
- Hot Topic and its subsidiaries will continue to operate independently from Spencer Spirit and will maintain their headquarters in California.
- Hot Topic CEO Steve Vranes will remain in the role, which he’s had for a decade, and will report directly to Steven Silverstein, CEO of Spencer Spirit Holdings.
Dive Insight:
The acquisition of Hot Topic will unite six retail concepts under one parent company.
Spencer Spirit Holdings’ portfolio includes Spencer’s, Spirit Halloween and Spirit Christmas, while Hot Topic’s portfolio includes its namesake brand, BoxLunch and Her Universe. The combined company will have over 3,000 stores across North America.
"While our operating models and strategies cater to unique and different audiences, our core values, mission, and commitment to innovation are completely aligned,” Silverstein said in a statement. “This transaction enhances our long-term durability, broadens our reach, and positions us to write the next chapter of retail history together."
Bloomberg reported earlier this week that Spencer bought the Hot Topic portfolio for $350 million.
Private equity group Sycamore Partners acquired Hot Topic in 2013 for around $600 million. At that time, the sale also included the brands Torrid and Blackheart.
