JCPenney and SPARC Group, which holds a portfolio of brands including Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica, have formed a joint venture in an all-equity transaction to create Catalyst Brands. The new company launches with more than $9 billion in revenue, 1,800 store locations and 60,000 employees.
Catalyst Brands also has sold the U.S. operations of Reebok and is exploring strategic options for Forever 21’soperations. The new entity’s shareholders include Simon Property Group, Brookfield Corp., Authentic Brands Group and Shein.
Former JCPenney CEO Marc Rosen has been named CEO of Catalyst Brands, with three brand CEOs overseeing the new company’s portfolio reporting to him. 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 to lead Brooks Brothers and add responsibility for Eddie Bauer.
“Catalyst Brands brings together the rich heritage of six unique brands with modern energy and a new vision for success,” said Rosen in a statement. “Together, we bring scale, expertise and broad appeal to customers across America.”
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A Robust Portfolio of Fashion Brands
With a range of offerings including formal fashion from Brooks Brothers, casual apparel for younger consumers from Aéropostale, outdoor apparel and gear from Eddie Bauer and everyday fashion for the whole family from JCPenney, Catalyst Brands will boast expansive reach across multiple market and customer segments.
The company plans to integrate complementary strengths such as product design and sourcing capabilities, deep supplier relationships and a growing use of AI and data-driven technology to enhance supply chain and inventory management capabilities and deepen customer relationships.
“Our relationship with more than 60 million customers and the deep data we have create a compelling consumer value proposition across our brands,” said Rosen. “We can design a more personalized shopping experience, offer unified loyalty and credit card programs, and ultimately cross-sell more effectively. With a clean balance sheet, we’re in a great position to move forward.”
Prior to this deal, JCPenney had been implementing a turnaround initiative introduced in September 2023, using $1 billion to upgrade digital capabilities, in-store technology and merchandising and supply chain optimization. The retailer also joined the Bazaarvoice Visual Syndication Network in September 2024 and launched an adaptive apparel line in partnership with disabled writer and athlete Jamey Perry.
