JCPenney, SPARC merge to form Catalyst Brands; Forever 21 exploring options
Six retail banners have been brought together under a new umbrella — headed by former JC Penney CEO Marc Rosen — that will leverage combined scale, distribution, design and sourcing.
JCPenney and SPARC Group (a joint venture of brand management firm Authentic Brands Group, Simon Property Group and Shein) have combined to form a new organization, called Catalyst Brands, which is made up of SPARC’s Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica brands, as well as JCPenney. The new company is a joint venture formed in an all-equity transaction between JCPenney and SPARC, with shareholders Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein.
As to Forever 21, which is also part of the SPARC portfolio, Catalyst said it is “exploring strategic options” for the young women’s fashion brand. In addition, Catalyst has sold the U.S. operations of Reebok.
Catalyst launches with more than $9 billion of revenue, 1,800 store locations, 60,000 employees and $1 billion of liquidity and is poised to generate significant strategic and operational value. The company is headquartered at the current corporate location of JCPenney in Plano, Texas, with offices in New York, Los Angeles and Seattle.
Leadership Structure
The formation of Catalyst brought with it a round of leadership changes, including the appointment of Marc Rosen, formerly the CEO of JCPenney, as CEO of Catalyst Brands. Three brand CEOs will oversee the portfolio and report to Rosen:
Three brand CEOs will oversee the portfolio and report to Rosen:
•Michelle Wlazlo, formerly the chief merchandising and supply chain officer of JCPenney, has been promoted to brand CEO of the department store retailer.
•Natalie Levy continues her role as brand CEO of Aéropostale, Lucky Brand and Nautica, and Ken Ohashi will continue leading Brooks Brothers and has assumed responsibility of Eddie Bauer in his new role as brand CEO of both brands.
•Kevin Harper, formerly senior VP of people strategy and operations at Walmart, will join Catalyst as COO.
•Marisa Thalberg, formerly the consulting chief marketing and brand officer of JCPenney, has become the chief customer and marketing officer of Catalyst.
Additional leadership appointments can be found here.
“Catalyst Brands brings together the rich heritage of six unique brands with modern energy and a new vision for success,” Rosen said. “The word ‘catalyst’ reflects our drive to accelerate innovation and energy and amplify the impact of this powerhouse portfolio. Together, we bring scale, expertise and broad appeal to customers across America.”
With an expansive reach across market and customer segments, the new company said it will integrate complementary strengths, including strong product design and sourcing capabilities, deep supplier relationships and a growing use of data-driven and AI technology to enhance its supply chain and inventory management capabilities and to deepen consumer relationships.
“We can design a more personalized shopping experience, offer unified loyalty and credit card programs, and ultimately, cross-sell more effectively,” said Rosen. “That’s one example of the many benefits we’ll see in this combination. With a clean balance sheet, we’re in great position to move forward.”
JCPenney operates more than 650 stores in the U.S. and Puerto Rico.
SPARC Group is a full-service retail enterprise that drives product and commerce innovation through its multi-brand platform. The company operates retail stores, shop-in-shops, and eCommerce platforms in the U.S. while supporting leading wholesale accounts across North America, South America, Europe, and Asia Pacific. The Catalyst Brands transaction does not affect the intellectual property owned by Authentic Brands Group which SPARC Group licenses (Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand, and Nautica).