NEW YORK (
announced Monday evening a major overhaul to its business.
The business changes include the closure of its music sharing division, StockHound, the write-down of unproductive inventory and the write-down of fixed assets that are no longer critical to the strategic direction of the company.
Hot Topic also announced the departure of its Chief Merchandising Officer, Amy Kocourek. The move follows the recent resignation of CEO Betsy McLaughlin, who was replaced by Linda Harper, former CEO of
The company will also no longer report monthly same-store sales results.
Hot Topic estimates these changes, along with severance costs related to recent managerial shifts, will result in a pre-tax charge of about $15 million, or 21 cents a share, in the first quarter.
For the period, the retailer issued a forecast of a loss of 1 cents a share to loss of 4 cents, with a low-single-digit decline in same-store sales. Full-year earnings are expected to come in between 5 cents and 15 cents a share.
--Written by Jeanine Poggi in New York.
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