Hot Topic Gets New Top Executive
Hot Topic Inc., the mall-based retailer that appeals to young shoppers into the music scene, announced that Michael Crooke will take over the top spot as president of the Hot Topic division.
He replaces Jerry Cook, who will become the chief operating officer, overseeing all operational support functions for Hot Topic Inc., based in City of Industry, Calif. Hot Topic also runs a retail chain called Torrid, whose stores are stocked with merchandise geared for the plus-sized customer. Crooke will report to Chief Executive Betsy McLaughlin.
“Michael’s experience leading customer-focused, culture-centric, lifestyle retailers makes him an ideal fit for our team,” McLaughlin said in a statement.
Crooke comes at a time when Hot Topic has been struggling. Same-store sales have dipped consistently since May 2004, with a few months of increases. The company operates 683 Hot Topic stores and 156 Torrid stores.
In the past few years, the retailer has been looking for new ways to re-connect with music- and pop culture–obsessed males and females between the ages of 12 to 22. For example, it will be debuting a social-networking site called ShockHound this summer.
Financially, the company has hit some rough patches recently. In May, the company reported a first-quarter net loss of $1.41 million on sales of $159 million. The company’s stock price has lagged, as well. Its 52-week high reached $11.45 a share on July 12, 2007. Currently, Hot Topic stock is trading at about $5 a share.
Crooke has a long history of apparel-related experience. From 1999 to 2005, he was president and chief executive of Patagonia Inc., the outdoor and sports-related clothing company based in Ventura, Calif. He stepped down to take over as chief executive of Revolution Living, the company founded by America Online Inc. co-founder Steve Case. Most recently, Crooke was a senior advisor to Revolution Living.
Prior to joining Patagonia in 1999, Crooke was chairman and chief executive of Pearl Izumi, a cycling and performance-apparel company based in Colorado. In addition, he was general manager of backpack manufacturer Kelty Packs for several years. —Deborah Belgum
