(Filed Under Financial and General Interest News). Hot Topic Inc.—which reported a net loss of $0.6 million during the fourth quarter ended January 29—announced company changes Monday including the discontinuation of its music website Shockhound.com.
The company also announced that Amy Kocourek, chief merchandising officer of the Hot Topic division, has left the company, and the new C.E.O Lisa Harper has taken over her responsibilities. This marks Hot Topic Inc.’s third recent executive departure; the company announced in late January that Chris Daniels, president of Torrid, will leave on April 29. On March 21, Betsy McLaughlin resigned as C.E.O.
In Monday’s announcement, Hot Topic Inc. also disclosed that it will “write down unproductive inventory” and “write down fixed assets that are no longer critical to the strategic direction of the company.” The company estimated that these changes will result in a total pre-tax charge of approximately $15 million, or 21 cents per diluted share, mainly in the first quarter of this fiscal year.
In addition, the company will discontinue monthly sales reporting in the third quarter of 2011.
As of February 26, Hot Topic Inc. operated 653 Hot Topic stores in 50 states, Puerto Rico and Canada, and 151 Torrid stores.
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