JCPenney, Sparc Group Merge To Form Catalyst Brands

(RTTNews) - Department store chain JCPenney announced that it has merged with SPARC Group, a full-service retail enterprise operating Aéropostale, Eddie Bauer, and Forever 21, among others, to launch a new organization, Catalyst Brands.

The combination brings together six iconic American retail brands under a unified powerhouse portfolio, aiming to offer better service to customers through combined scale, distribution, design and sourcing, the company noted.

JCPenney and SPARC Group has formed a joint venture in an all-equity transaction to create the combined Catalyst Brands organization. The shareholders include Simon Property Group, Brookfield Corp., Authentic Brands Group and Shein.

In the deal, SPARC Group's brands Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica are merged with JCPenney and its exclusive private brands, including Stafford, Arizona and Liz Claiborne, under the Catalyst Brands.

Catalyst Brands, headquartered at the current corporate location of JCPenney in Plano, Texas, launches with more than $9 billion of revenue, 1,800 store locations, 60,000 employees and $1 billion of liquidity. JCPenney noted that Catalyst Brands over the past three years has served over 60 million customers through a distribution network of owned stores, e-commerce sites and wholesale partners.

In the portfolio, the offerings include business and formal fashion from Brooks Brothers, casual apparel for teenagers and young adults from Aéropostale, outdoor recreation clothing and gear from Eddie Bauer, and everyday style for every family from JCPenney, among others.

In addition, Catalyst Brands has sold the U.S. operations of Reebok and is exploring strategic options for the operations of Forever 21.

The company noted that the Catalyst Brands transaction does not affect the intellectual property owned by Authentic Brands Group which SPARC Group licenses, such as Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand, and Nautica.

Following the combination, Marc Rosen, formerly the chief executive officer of JCPenney, has become CEO of Catalyst Brands. Kevin Harper, formerly an executive with Walmart, will join Catalyst Brands as chief operating officer, while Marisa Thalberg has become the new chief customer and marketing officer.

Further, 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 JCPenney. Natalie Levy will continue to be Brand CEO of Aéropostale, Lucky Brand and Nautica. Meanwhile, Ken Ohashi, currently head of Brooks Brothers, with continue to lead tht along with Eddie Bauer as Brand CEO.

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. ...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."