JCPenney and Sparc Group merge portfolios to form Catalyst Brands

JCPenney and Sparc Group have merged to form a new organization, Catalyst Brands, creating a portfolio of six retail banners. The combined group was formed in an all-equity transaction between JCPenney and Sparc Group, with shareholders Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein.

The company said in a release that Catalyst Brands brings together Sparc Group’s Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica with JCPenney and its exclusive private brands, including Stafford, Arizona and Liz Claiborne.

“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,” said Marc Rosen, formerly the chief executive officer of JCPenney, who has been named as the CEO of Catalyst Brands.

The new entity launches with over 9 billion dollars of revenue, 1,800 store locations, 60,000 employees and 1 billion dollars of liquidity. In addition, Catalyst Brands has sold the US operations of Reebok and is exploring strategic options for the operations of Forever 21.

Additionally, the company added, Michelle Wlazlo, formerly the chief merchandising and supply chain officer of JCPenney, has been promoted to brand CEO of JCPenney. 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 an executive with Walmart, will join Catalyst Brands as chief operating officer. Marisa Thalberg, formerly the consulting chief marketing and brand officer of JCPenney, has become the chief customer and marketing officer of Catalyst Brands.

Catalyst Brands is headquartered at the current corporate location of JCPenney in Plano, Texas with offices in New York, Los Angeles and Seattle.