Hot Topic to Close 50 Stores
Hot Topic announced plans to implement a cost-reduction plan, which includes the closure of 40 to 50 underperforming stores and the reduction of capital expenditures in 2011 to $20 million, compared to a 2010 budget of about $30 million to $32 million. The store closures are slated to be completed by the end of the first fiscal quarter in 2011. Hot Topic has reported sales weakness in recent quarters, which has widened its financial loss. At this time, it is uncertain which stores will close.