• by Sarah Mahoney  @mahoney_sarah, January 9, 2025

 
Martha Stewart and other celebs star in JC Penney's recent ads.

One of America’s oldest retailers is heading into another new chapter, with JC Penney merging with SPARC Group, a company known for scooping up struggling retail brands. The new portfolio is coming together in Catalyst Brands, a $9 billion organization, with Marc Rosen, head of JC Penney, stepping in as CEO.

Marisa Thalberg, who had been CMO at Penney on a consulting basis, has been named chief customer and marketing officer of Catalyst Brands.

Michelle Wlazlo, formerly JCPenney's chief merchandising and supply chain officer, has been promoted to brand CEO of JCPenney.

Founded in 1902, Penney has been struggling for years and filed for bankruptcy in 2020, an early casualty of COVID-19. It emerged from bankruptcy with the help of Simon Property Group and Brookfield Asset Management — the nation's largest mall owners — buying the ailing retailer for $1.75 billion.

The combined Catalyst Brands organization is a joint venture formed in an all-equity transaction between JCPenney and SPARC Group, with shareholders that include Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein.

The deal involves additional moving pieces: Catalyst Brands has sold the U.S. operations of Reebok and is exploring a sale for Forever 21.

Before joining JC Penney in 2021, Rosen had been president of Levi Strauss Americas and had key roles at Walmart.

Wlazlo will report to Rosen, as will Natalie Levy, brand CEO of Aéropostale, Lucky Brand and Nautica. Ken Ohashi continues leading Brooks Brothers and adds responsibility for Eddie Bauer.

“The word ‘catalyst’ reflects our drive to accelerate innovation and energy and amplify the impact of this powerhouse portfolio,” Rosen says in the announcement. “Together, we bring scale, expertise and broad appeal to customers across America.”

While Penney’s has made plenty of progress in its recent comeback, department stores continue to lose share, as consumers prefer online and specialty options. In recent years, Kohl’s, JC Penney’s closest rival, has also seen sales wither.

Placer.ai, which tracks store traffic, says that visits to JC Penney have been improving overall. Visits during the fourth quarter fell 3%, a marked improvement from the first quarter decline of 9.2%.

Before the merger announcement, JC Penney announced a new relationship with Mischief@No Fixed Address to develop a new brand platform.