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Press release from PR Newswire

Acquisition of Hot Topic, Inc. by Sycamore Partners, Inc. May Not Be in the Best Interests of Hot Topic Shareholders

Friday, March 08, 2013

Acquisition of Hot Topic, Inc. by Sycamore Partners, Inc. May Not Be in the Best Interests of Hot Topic Shareholders17:55 EST Friday, March 08, 2013SAN DIEGO and CITY OF INDUSTRY, Calif., March 8, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Hot Topic, Inc. (NASDAQ: HOTT) by Sycamore Partners, Inc.  On March 7, 2013, the two companies jointly announced the signing of a definitive merger agreement whereby Sycamore Partners will acquire Hot Topic for $14.00 per share.  (Logo: Hot Topic Shareholders Might Not Receive Maximum Value for Their Stock Robbins Arroyo LLP's investigation focuses on whether the board of directors at Hot Topic is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger or whether they are seeking to benefit themselves. The merger consideration is substantially below the $16.40 target price set by an analyst at B. Riley & Company on January 22, 2013. On February 6, 2013, Hot Topic released its fourth quarter and full year 2012 earnings results, reflecting strong increases in net sales over the same periods in 2011.  Specifically, Hot Topic reported a net increase in sales for the fourth quarter of 11%, to $233 million, while net sales for the full year increased to $741.8 million.  Further, the company maintained its previously announced fiscal 2013 earnings estimate of growth of 30% to 35%, as compared to fiscal 2012. Commenting on these results, Lisa Harper, Chairman and CEO of Hot Topic stated, "we expect many of the company's new merchandising, system and process initiatives will continue to gain traction in 2013, supporting continued comp growth and additional margin expansion in all brands."Given these facts, the firm is examining the board of directors' decision to sell Hot Topic now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.    Hot Topic shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner.  Hot Topic shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003,, or via the shareholder information form on the firm's website.Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law.  The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.  For more information, please go to release link: Advertising. Past results do not guarantee a similar outcome.   Contact:Darnell R. DonahueRobbins Arroyo 525-3990 or Toll Free (800) 350-6003www.robbinsarroyo.comSOURCE Robbins Arroyo LLP