Is Hot Topic a Hot Acquisition?
Sycamore Partners has landed a deal to acquire its second clothing store, this time switching from mom-oriented to punk-teen-oriented clothing and accessories.
Last year, the private equity firm took over the Talbots women’s wear chain. The chain, favored by moms, had been struggling when Sycamore Partners bought it for $391 million in the summer.
Hot Topic (NASDAQ:HOTT) is a slightly different story from Talbots.
The clothing and apparel chain, found in malls across the U.S. and popular among angst-filled teens, has performed well over the last year. Shares over the last 12 months rose 22 percent and same-store sales at locations open more than a year rose 2 percent…