American department store chain JCPenney has joined forces with Aéropostale brand owner SPARC Group to establish a new entity, Catalyst Brands.
The merger unites six retail banners under one corporate umbrella.
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Catalyst Brands combines SPARC Group’s Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica with JCPenney and its exclusive in-house labels such as Stafford, Arizona, and Liz Claiborne.
The new entity debuts with revenues exceeding $9bn, a retail footprint of 1,800 stores, a workforce of 60,000 employees, and a liquidity reserve of $1bn.
The organisation is strategically positioned to unlock substantial synergies and operational efficiencies.
The joint venture is structured as an all-equity deal involving key shareholders from Simon Property Group, Brookfield Corporation, Authentic Brands Group, and Shein.
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By GlobalDataConcurrent with the merger announcement, Catalyst Brands disclosed the divestiture of Reebok’s US operations and is currently evaluating strategic alternatives for Forever 21.
Leadership at Catalyst Brands features Marc Rosen at the helm as CEO. Rosen previously served as CEO of JCPenney.
Rosen said: “Catalyst Brands brings together the rich heritage of six unique brands with modern energy and a new vision for success. 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.
“For us, customers are at the heart of what we do. We have a shared belief that customers deserve fashion and style of great quality for any and every moment in life. We will leverage our resources and best-in-class industry talent to grow our brands further.”
Michelle Wlazlo ascends to Brand CEO of JCPenney following tenure as chief merchandising and supply chain officer.
Natalie Levy maintains her role overseeing Aéropostale, Lucky Brand, and Nautica. Ken Ohashi expands his remit to include both Brooks Brothers and Eddie Bauer as their Brand CEO.
Former Walmart executive Kevin Harper is appointed as chief operating officer of Catalyst Brands.
Headquartered in Plano, Texas, Catalyst Brands has additional offices across New York, Los Angeles, and Seattle.
