Hot Topic

Last updated
Hot Topic, Inc.
Company type Private
Nasdaq: HOTT
Industry Retail
FoundedOctober 1989;35 years ago (1989-10)
Montclair Plaza
Montclair, California, U.S.
FounderOrv Madden
Headquarters City of Industry, California, U.S.
Number of locations
675 (April 2020) [1]
Key people
Steve Vranes (CEO (2016–present)
Betsy McLaughlin (CEO) (2000–2011)
Bruce Quinell (chairman of the board)
Productsclothing, accessories, music, jewelry
RevenueIncrease2.svg US$741.8 million (FY 2013) [2]
Increase2.svg US$30.8 million (FY 2013) [3]
Increase2.svg US$19.5 million (FY 2013) [4]
Total assets Decrease2.svg US$274.9 million (FY 2013) [5]
Total equity Decrease2.svg US$172.8 million (FY 2013) [6]
Owner Sycamore Partners
Divisions Blackheart Lingerie
BoxLunch
Website www.hottopic.com

Hot Topic, Inc. is an American fast-fashion company specializing in counterculture-related clothing and accessories, as well as licensed music. The stores are aimed towards an audience interested in rock music and video gaming, and most of their audience ranges from teens to young adults. In 2007, approximately 40% of Hot Topic's revenue comes from sales of licensed band T-shirts. [7] The majority of the stores are located in regional shopping malls. [7]

Contents

History

The first Hot Topic store was opened in November 1989 in Montclair Plaza, Montclair, California, [8] by Orv Madden, a former executive at The Children's Place, who retired as CEO in 2000 and was replaced by Betsy McLaughlin, who headed the company until 2011. Lisa Harper assumed the position of CEO in March 2011 until Steve Vranes was announced as the new CEO in 2016. The company went public and began trading on NASDAQ in 1996.

In 2013, Hot Topic announced its sale to private equity firm Sycamore Partners for $600 million. [9] The company ceased publishing financial data after 2013, as previously required as a public company. [10] [11]

In 2024, Hot Topic was the subject of what cybersecurity firm Hudson Rock labeled the "largest retail data breach in history," involving the theft of personal data belonging to 350 million customers of Hot Topic, Box Lunch, and Torrid, with the stolen data reportedly including names, emails, addresses, phone numbers, birthdates, and partial credit card numbers. [12] [13]

Product assortment and sales

Hot Topic at Universal CityWalk in Hollywood, California, displaying the Hot Topic logo used during the peak of the company's popularity. Hot Topic, Universal CityWalk Hollywood.JPG
Hot Topic at Universal CityWalk in Hollywood, California, displaying the Hot Topic logo used during the peak of the company's popularity.

The store has gone through a number of phases in its history, reflective of various alternative culture and pop culture (including geek culture) trends (prime examples being Lolita, goth, or cosplay outfits). In the early 2000s, the store was known for heavily marketing nu-metal merchandise relating to bands. During that period, the store was also known for its sales of controversial gel bracelets (often rumored to be "sex bracelets") as well as the equally controversial styles of phat pants-inspired bondage pants popular among teenagers in the late 1990s and early-to-mid 2000s. [14]

The store later focused on skinny jeans and merchandise related to scene, emo and hardcore punk music and fashion, with a much larger focus on goths and spiky chokers and clothing. At present, the store's selection is largely focused on licensed video game merchandise and internet memes popular on sites such as Tumblr, as well as anime, manga, Japanese films, and the associated otaku subculture.

Ventures

Hot Topic launched Torrid, a concept store that sells clothing for plus-size women, in 2001. [15] While still under the same parent umbrella as Hot Topic, in 2015 the company branched off to become Torrid, LLC.

In 2008, Hot Topic launched ShockHound, an online retailer and social networking music site. [16] In March 2011, Hot Topic made a public statement announcing the shutdown of ShockHound. The site is no longer live, all merchandise was moved to HotTopic.com, and the company ceased sales of MP3s. [17]

In August 2010, Hot Topic first ventured the international market with opening two outlets in Ontario, Canada, initially at Square One Shopping Centre in Mississauga on August 11, and then at Scarborough Town Centre in Toronto the following day. [18] The company has since also opened additional Canadian locations as well as locations in Puerto Rico.

In 2012, Hot Topic launched Blackheart Lingerie, a concept store that sells lingerie and clothing for women. [19]

On May 26, 2015, Hot Topic announced its intent to acquire Geeknet Inc., owner of the online retailer ThinkGeek, for $122 million. However, the company received a $140 million counter-offer from GameStop, which Hot Topic did not choose to exceed. [20] [21] [22] [23]

On October 14, 2015, Hot Topic launched BoxLunch, a gift and novelty retail store. [24] For every $10 spent, a meal is donated to a person in need. [25]

Tour sponsorship

The company sponsored the 2004 Ozzfest concert tour, [26] the 2005 through 2007 Sounds of the Underground tour, [27] the 2008 Taste of Chaos tour, [28] and had a stage at and sponsored the 2008 and 2009 Rockstar Energy Drink Mayhem Festival tours. The company went on to sponsor Black Veil Brides 2014 Black Mass tour with special guests Falling in Reverse. [29]

Related Research Articles

eBay American multinational e-commerce corporation

eBay Inc. is an American multinational e-commerce company based in San Jose, California, that allows users to buy or view items via retail sales through online marketplaces and websites in 190 markets worldwide. Sales occur either via online auctions or "buy it now" instant sales, and the company charges commissions to sellers upon sales. eBay was founded by Pierre Omidyar in September 1995. It has 132 million yearly active buyers worldwide and handled $73 billion in transactions in 2023, 48% of which was in the United States. In 2023, the company had a take rate of 13.81%.

<span class="mw-page-title-main">ThinkGeek</span> Defunct American online retailer

ThinkGeek was an American retailer that catered to computer enthusiasts and "geek culture". Described as a "Sharper Image for sysadmins", their merchandise has been likened to "toys for adults, novelties designed to appeal to both your inner child and your inner grad student." These include clothing, electronic and scientific gadgets, unusual computer peripherals, office toys, pet toys, child toys, and caffeinated drinks and candy. ThinkGeek was founded in 1999 and was based in Fairfax, Virginia. The brand is currently owned by Geeknet, a subsidiary of GameStop.

American Eagle Outfitters, Inc. is an American clothing and accessories retailer headquartered at SouthSide Works in Pittsburgh, Pennsylvania. It was founded in 1977 by brothers Jerry and Mark Silverman as a subsidiary of Retail Ventures, Inc., a company that also owned and operated Silverman's Menswear. The Silvermans sold their ownership interests in 1991 to Jacob Price of Knoxville, Tennessee. American Eagle Outfitters is the parent company of Aerie, Unsubscribed and Todd Snyder.

Lane Bryant Inc. is an American women's apparel and intimates specialty retailer focusing on plus-size clothing. The company began in 1904 with maternity designs created by Lena Himmelstein Bryant Malsin. Lane Bryant, Inc., is the largest plus-size retailer in the United States. As of 2022, the chain consists of 448 stores in 46 U.S. states. Lane Bryant, Inc. is not affiliated with Lane Bryant catalog, which was spun off as a separate business in 1993.

<span class="mw-page-title-main">Torrid Holdings</span> American retail chain

Torrid Holdings Inc. is an American women's retail chain formerly owned by Hot Topic. While it is still owned by Sycamore Partners, owners of Hot Topic, in 2015, the company branched off to become Torrid, LLC. The store offers plus-size clothing and accessories for women size 10-30. Torrid began operations in April 2001. The first location opened in the Brea Mall in Brea, California. As of 2024, Torrid has over 650 stores in operation across all states in the United States and some regions of Canada. Torrid opened its first store in 2001, and an international store in Canada (Toronto) in August 2015. In July 2021, the company went public on the New York Stock Exchange, under the symbol CURV.

<span class="mw-page-title-main">Disney Store</span> Company selling Disney products

The Disney Store is a chain of specialty stores created on March 28, 1987, and sells only Disney related items, many of them exclusive, under its own name and Disney Outlet. It was a business unit of Disney Consumer Products with the Disney Experiences segment of The Walt Disney Company conglomerate.

<span class="mw-page-title-main">Aéropostale (company)</span> American clothing retailer

Aéropostale Inc., is an American shopping mall–based retailer of casual apparel and accessories, principally aimed at young adults and teenagers. Aéropostale maintains control over its proprietary brands by designing, sourcing, marketing, and selling all of its own merchandise. The company sells via Aéropostale stores in the United States and through its e-commerce site.

American Apparel Inc. is a North American clothing retailer. The brand began with operating retail stores between the late 1980s and late 2010s. Its operations are based in Los Angeles, California. Founded by Canadian businessman Dov Charney in spring 1989, it was a vertically integrated company that ranked as one of the largest apparel manufacturers and marketers in North America.

<span class="mw-page-title-main">VF Corporation</span> American apparel company

VF Corporation is an American global apparel and footwear company founded in 1899 by John Barbey and headquartered in Denver, Colorado. The company's 11 brands are organized into three categories: Outdoor, Active and Work. In 2015, the company controlled 55% of the U.S. backpack market with the JanSport, Eastpak, Timberland, and The North Face brands.

<span class="mw-page-title-main">Goody's (department store)</span> Former American retail chain

Goody's Family Clothing Inc. was an American chain of department stores, owned and operated by Stage Stores and headquartered in Houston, TX. It specialized in retailing on-trend apparel, accessories, cosmetics, footwear, and housewares.

New rue21, LLC (rue21) is an American specialty retailer of women's & men's casual apparel and accessories headquartered in the Pittsburgh suburb of Warrendale, Pennsylvania. Their clothes are designed to appeal to people who desire, wish, or feel to be 21. In 2013, Apax Partners, a global private-equity firm, acquired the company by funds advised for $42.00 per share in cash. rue21 filed for Chapter 11 bankruptcy protection on May 16, 2017, and emerged on September 22, 2017, after the company's reorganization plan was confirmed by the U.S. Bankruptcy Court for the Western District of Pennsylvania. New owners include hedge funds BlueMountain Capital Management, Southpaw Asset Management and Pentwater Capital Management. In May 2024, rue21 declared bankruptcy again, and their website became unsupportive. As of June 28th, 2024, 7 stores have resigned leases, as part of a stalking horse buyout from YM Inc. Fashion House, a Canadian retailer, while the public assets were up for auction. The company has plans to reopen up to 120 stores within the coming months.

<span class="mw-page-title-main">Wet Seal</span> Defunct American corporation

Wet Seal was an American fast fashion retailer, headquartered in Los Angeles, California. The retailer specialized in selling clothing and accessories. The company was founded in Newport Beach, California, by Lorne Huycke in 1962 as "Lorne's". The "Wet Seal" name is derived from a comment Huycke's wife made during a fashion show that a model wearing a bathing suit looked like a "wet seal." The company was incorporated as Wet Seal in 1990.

<span class="mw-page-title-main">Sierra (retailer)</span> American off-price retailer

Sierra Trading Post, Inc., doing business as Sierra, is an online and brick-and-mortar retailer of off-price merchandise operated by the TJX Companies. The Framingham, Massachusetts–based company offers products in categories such as outdoor recreation, fitness and adventure gear, and apparel, along with footwear, clothing, and home decor. Sierra sells merchandise through 78 retail stores as of November 2022 and a company website. It carries products from approximately 3,000 name-brand manufacturers.

Disney Consumer Products, Inc. is the retailing and licensing subsidiary of the Disney Experiences segment of The Walt Disney Company. Previously, Consumer Products was a segment of Disney until 2016, then a unit of Disney Consumer Products and Interactive Media (2016–2018).

Geeknet, Inc. is an American company that is a subsidiary of GameStop based in Fairfax County, Virginia. The company was formerly known as VA Research, VA Linux Systems, VA Software, and SourceForge, Inc.

<span class="mw-page-title-main">Victoria's Secret</span> American lingerie and cosmetics retailer

Victoria's Secret is an American lingerie, clothing and beauty retailer. Founded in 1977 by a Stanford graduate student and his wife, Roy and Gaye Raymond, the company's five lingerie stores were sold to Les Wexner in 1982. Wexner rapidly expanded into American shopping malls, expanding the company into 350 stores nationally with sales of $1 billion by the early 1990s, when Victoria's Secret became the largest lingerie retailer in the United States.

<span class="mw-page-title-main">Nasty Gal</span> American fashion retailer

Nasty Gal is an American fast-fashion retailer that specializes in fashion for young women. The company has customers in over 60 countries. Founded by Sophia Amoruso in 2006, Nasty Gal was named "Fastest Growing Retailer" in 2012 by Inc. magazine. Nasty Gal is based in Los Angeles. In 2017, the company was purchased by the BooHoo Group out of Chapter 11 of the U.S. Bankruptcy Code.

<span class="mw-page-title-main">Gap Inc.</span> American multinational clothing and accessories retailer

The Gap, Inc., commonly known as Gap Inc. or Gap, is an American worldwide clothing and accessories retailer. Gap was founded in 1969 by Donald Fisher and Doris F. Fisher and is headquartered in San Francisco, California. The company operates four primary divisions: Gap, Banana Republic, Old Navy, and Athleta. Gap Inc. is the largest specialty retailer in the United States, and is 3rd in total international locations, behind Inditex Group and H&M. As of early 2023, Gap employs about 95,000 people.

Adore Me is a direct-to-consumer women's intimate apparel brand based in New York City. The company was started by Morgan Hermand-Waiche in 2010 while he was an MBA student at Harvard Business School and is a Certified B Corporation.

Sycamore Partners is an American private equity firm based in New York specializing in retail and consumer investments. The firm has approximately $10 billion in aggregate committed capital.

References

  1. ↑ Mejía, Paula (April 6, 2019). "Hot Topic Is Still Hot". The New York Times . Archived from the original on 2019-09-05. Retrieved 2019-09-14.
  2. ↑ "A50590453.HTM". Archived from the original on 2023-08-16. Retrieved 2023-08-16.
  3. ↑ "A50590453.HTM". Archived from the original on 2023-08-16. Retrieved 2023-08-16.
  4. ↑ "A50590453.HTM". Archived from the original on 2023-08-16. Retrieved 2023-08-16.
  5. ↑ "A50590453.HTM". Archived from the original on 2023-08-16. Retrieved 2023-08-16.
  6. ↑ "A50590453.HTM". Archived from the original on 2023-08-16. Retrieved 2023-08-16.
  7. 1 2 "Hot Topic Annual Report 2007" (PDF). Hot Topic, Inc. 2008-04-28. Archived (PDF) from the original on 2016-03-03. Retrieved 2008-12-09.
  8. ↑ "NOVEMBER, 1989 // First store opens in Montclair, CA – and we move our headquarters into the store's of Hot Topic". history.hottopic.com. November 1989. Archived from the original on 2017-08-12. Retrieved 2017-08-12.
  9. ↑ Merced, Michael J. de la (7 March 2013). "Sycamore Partners to Buy Hot Topic for $600 Million". DealBook. Archived from the original on 11 December 2017. Retrieved 5 March 2017.
  10. ↑ "Form 10-K Filing Hot Topic Fiscal Year ending February 2013". SEC. March 22, 2013. Archived from the original on August 16, 2023. Retrieved August 16, 2023.
  11. ↑ "EDGAR Entity Landing Page". www.sec.gov. Retrieved 2023-08-16.
  12. ↑ Gal, Alon (2024-10-23). "Largest Retail Breach in History: 350 Million "Hot Topic" Customers' Personal & Payment Data Exposed — As a Result of Infostealer Infection". InfoStealers. Archived from the original on 2024-11-05. Retrieved 2024-11-05.
  13. ↑ Fadilpašić, Sead (2024-10-24). "Millions of Hot Topic shoppers have data stolen by "Satanic" hacker". TechRadar . Archived from the original on 2024-11-05. Retrieved 2024-11-05.
  14. ↑ "1995 // Tripp, Kikwear, and UFO pants are bigger than ever. - The History of Hot Topic". history.hottopic.com. January 1995. Archived from the original on 2018-02-18. Retrieved 2018-02-17.
  15. ↑ Harris, Lynn (April 6, 2005). "Living large". Salon . Archived from the original on February 28, 2014. Retrieved February 26, 2014.
  16. ↑ "HOT TOPIC, INC. LAUNCHES SHOCKHOUND, NEW ALL-IN-ONE MUSIC SITE - UMG". 28 October 2008. Archived from the original on 24 June 2016. Retrieved 24 May 2016.
  17. ↑ "Hot Topic, Inc. Announces 2011 Changes Including ShockHound Closure". www.businesswire.com. 28 March 2011. Archived from the original on 24 June 2016. Retrieved 24 May 2016.
  18. ↑ "Hot Topic to open shops in Canada". Financialpost.com. 2010-06-21. Archived from the original on 2014-03-02. Retrieved 2014-02-26.
  19. ↑ Misener, Jessica (2012-11-01). "Hot Topic Launching 'Blackheart' Lingerie Line For The Romantic Mall-Goth In You". The Huffington Post . Archived from the original on 2014-07-25. Retrieved 2014-07-16.
  20. ↑ "Geeknet Gives Hot Topic Three Days to Match Higher Offer". Bloomberg. Archived from the original on 2015-05-31. Retrieved 30 May 2015.
  21. ↑ "Hot Topic to Buy Retailer Geeknet Inc". Wall Street Journal. Archived from the original on 28 February 2021. Retrieved 26 May 2015.
  22. ↑ Beilfuss, Lisa (29 May 2015). "Geeknet Calls New Takeover Offer Superior to Hot Topic's Bid". The Wall Street Journal. Archived from the original on 28 February 2021. Retrieved 30 May 2015.
  23. ↑ "GameStop outbids Hot Topic for ThinkGeek parent company purchase". Ars Technica. 2 June 2015. Archived from the original on 25 July 2017. Retrieved 2 June 2015.
  24. ↑ "New BoxLunch Stores To Carry Pop! Vinyls". Pop Vinyls. 2015-10-14. Archived from the original on 2015-11-16. Retrieved 2015-11-04.
  25. ↑ "BoxLunch". BoxLunch. Archived from the original on 2015-11-01. Retrieved 2015-11-04.
  26. ↑ Ratliff, B (2004-07-16). "Rock Review: Ozzfest Trudges On, Laden With Sponsors and Politics". The New York Times . Archived from the original on 2018-12-15. Retrieved 2008-12-09.
  27. ↑ "Official Website". Sounds of the Underground. Archived from the original on 2008-07-15. Retrieved 2019-09-28.
  28. ↑ Peters, M (2007-12-20). "Avenged Sevenfold, Atreyu Set For Taste Of Chaos". Billboard . Archived from the original on 2014-10-16. Retrieved 2013-03-24.
  29. ↑ "Rockstar69 🏋️". www.rockstar69.com. Archived from the original on February 12, 2008.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.