JCPenney merger creates a new retail brand company

Two key JCPenney executives are taking on larger roles now that the retailer has merged with SPARC Group to form a new organization called Catalyst Brands.

PLANO, Texas – Two key JCPenney executives are taking on larger roles now that the retailer has merged with SPARC Group to form a new organization called Catalyst Brands.

Former JCPenney CEO Marc Rosen is now CEO of Catalyst Brands. The company was formed by merging JCPenney with SPARC Group, whose brands include Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica.

Senior Leadership Appointments

Michelle Wlazlo, formerly JCPenney’s chief merchandising and supply chain officer, has been promoted to Brand CEO of JCPenney.
Natalie Levy continues her role as Brand CEO of Aéropostale, Lucky Brand and Nautica.
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.

Ownership Structure

Catalyst Brands launches with more than $9 billion of revenue, 1,800 store locations, 60,000 employees and $1 billion of liquidity.

The combined Catalyst Brands organization is a joint venture formed in an all-equity transaction between JCPenney and SPARC Group, with shareholders Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein. Previously, JCPenney was owned by Simon Property Group, Brookfield Corporation, which acquired the retailer out of bankruptcy.

In addition, Catalyst Brands has sold the U.S. operations of Reebok and is exploring strategic options for the operations of Forever 21, which was part of Simon and Brookfield’s portfolio with JCPenney.

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

What Next?

Catalyst Brands plans to integrate the complementary strengths of its constituent parts. Those include product design, sourcing and supplier relationships. In addition, it will leverage the growing use of data-driven and AI technology to enhance its supply chain and inventory management capabilities while also deepening consumer relationships.

Rosen noted that across the range of its brands, Catalyst has a data file encompassing more than 60 million consumers.

“We can design a more personalized shopping experience, offer unified loyalty and credit card programs, and ultimately, cross-sell more effectively. That’s one example of the many benefits we’ll see in this combination,” he explained. “With a clean balance sheet, we’re in a great position to move forward.”