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* Hot Topic Inc., a clothing and accessories retailer aimed at teens, said fiscal fourth-quarter profit jumped 20% to $12.5 million, or 38 cents a share, beating analysts’ expectations by a penny. The City of Industry-based company said sales grew 23% in the quarter ended Feb. 2 to $109.1 million. Hot Topic also said it expects earnings of $1.03 a share for 2002, much better than the 85 cents analysts forecast. Shares of Hot Topic closed down $2.17 at $21.88 on Nasdaq, before the results were released.
* Strouds Inc., a seller of bed and bath linens, won a Bankruptcy Court judge’s approval of its liquidation plan to wind down the business and distribute money to its creditors. The judge in Wilmington, Del., approved the plan at a hearing after 95% of the City of Industry-based company’s unsecured creditors voted to accept it. The plan calls for secured creditors to be paid in full. Unsecured creditors will receive a portion of their claims from money remaining after priority claims are paid, the company said. Shareholders will receive nothing.
For the record:
12:00 a.m. March 23, 2002 FOR THE RECORD
Los Angeles Times Saturday March 23, 2002 Home Edition Main News Part A Page 2 A2 Desk 3 inches; 81 words Type of Material: Correction
Strouds--A Business section brief March 5 about a judge’s approval of Strouds Inc.’s liquidation plan incorrectly reported that Strouds Inc. was a seller of bed and bath linens. In fact, it is a former seller of bed and bath linens. The Strouds stores, owned by a different company, are unaffected. Strouds Inc., which was based in City of Industry, last April completed its sale of its 50 stores, corporate headquarters and other assets for $39.5 million to Strouds Acquisition Corp., a group made up of some company executives and officials of investment firm Cruttenden Partners.
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