CITY OF INDUSTRY, Calif. (AP) — Hot Topic is selling itself to investment firm Sycamore Partners for about $592.4 million in cash.
Sycamore is paying $14 per share for the teen retailers, 30 percent above the City of Industry, Calif., company's closing stock price Wednesday.
Hot Topic's shareholders still have to approve the deal. All of Hot Topic's directors voted for it.
Becker Drapkin Management, an investment firm and Hot Topic's largest shareholder, support the deal, as does the company's chairman and CEO, Lisa Harper.
Hot Topic Inc. runs its namesake stores as well as the Torrid chain, a plus-size brand. It's also testing a new store, Blackheart, which offers beauty products, lingerie and accessories. The company has about 800 stores in North America.