Sycamore Partners is in advanced discussions nearing a deal to sell retailer Hot Topic to Spencer Spirit Holdings for approximately $350m, Bloomberg reported, citing unnamed sources.

If the deal proceeds, it would end Sycamore's 13-year stewardship of the retailer.

The sources indicated an announcement could come soon while cautioning that terms had not been finalised and that elements of the deal, including its timeline, remain subject to change.

Sycamore took Hot Topic private in 2013, in a transaction that valued the company at approximately $600m.

During its time under Sycamore's control, the chain expanded its focus on merchandise tied to licensed properties, including those from Marvel and Pokémon.

In a separate move, Sycamore split off Hot Topic's plus-size division, Torrid Holdings, in 2015, later taking it public in 2021.

For Spencer's, the purchase would broaden its presence in shopping malls, building on its existing Spirit Halloween seasonal pop-up business.

The company is planning to launch as many as 1,500 seasonal outlets this year.

Spencer's history dates to 1947, when it launched as a mail-order catalogue business, later expanding into novelty items sold in malls from the 1960s onward.

Established in 1988, Hot Topic currently runs more than 600 stores across the US and Canada.

This development follows recent reports that discussions between the Weston family and Sycamore Partners regarding a takeover of UK-based pharmacy and retail chain Bootshave hit obstacles.

The family's revised offer has reportedly raised uncertainty around the proposed £7bn ($9.40bn) deal.

That report of a reduced bid came after Australian company Sigma Healthcare pulled out of talks in June over a potential acquisition of Boots, stating that a transaction valued at $10bn did not fit with its strategic direction.