SPARC Group LLC, the joint venture composed of brand management firm Authentic Brands Group (Authentic) and mall operator Simon Property Group, is on the hunt for a new CEO.
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“SPARC is searching for a dynamic leader who will drive brand growth, enhance operational efficiency, and deliver long-term performance,” an individual familiar with the process told Sourcing Journal. SPARC, the acronym for Simon Properties Authentic Retail Concepts, provides a second life to formerly distressed brands.
Sources said former CEO Marc Miller left the company about five months ago. Miller could not be reached for comment. His LinkedIn profile indicates that he became SPARC’s CEO in May 2018, following a 13-year career at Aéropostale. He joined the teen apparel brand in 2005 as vice president and group vice president for strategic planning, new business development and e-commerce. Miller then worked up the ranks to the C-suite and was named chief financial officer in December 2010, followed by a stint as chief operating officer that began in February 2015. He became the brand’s CEO in December 2016.
Aéropostale filed for Chapter 11 bankruptcy protection in May 2016, and was acquired a few months later in September by a consortium that included Authentic and Simon for $243.3 million. The retailer was the joint venture’s first acquisition.
SPARC’s interim CEO is Stanley Shashoua, who has served as Simon’s chief investment officer since 2017. Shashoua was interim CEO at JCPenney from January 2021 through December of that year, and has served as executive chairman of the department store since January 2021.
JCPenney’s former owner J.C. Penney Co. Inc. filed for bankruptcy protection in May 2020 at the height of the Covid-19 pandemic. The retailer was acquired by its two mall operators, Simon and Brookfield Property Partners, in December 2020. While Authentic has a minority stake in JCPenney, SPARC itself has no investment stake in the retailer.
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SPARC is a full-service brand operator that has a portfolio across fashion, footwear, outdoor, sports and lifestyle. In addition to Aéropostale, entities under the SPARC umbrella include global lifestyle brand Brooks Brothers , outdoor specialist Eddie Bauer , fast-fashion retailer Forever 21 , premium denim manufacturer Lucky Brand , lifestyle brand Nautica , and athletic footwear brand Reebok . Its brands, which are sold in over 65 countries, account for over $12.7 billion in global retail sales.
The structure of the joint venture leaves the operating arm under SPARC, with the intellectual property assets housed in a separate holding company controlled by the brand management firm. Due to its brand management expertise, Authentic oversees the marketing of all the brands. The Aérospostale format became the playbook for subsequent acquisitions into the SPARC portfolio.
Each portfolio company has its own CEO. Because SPARC oversees the operating components of the business, it functions much like a vertical retailer, with its own head of wholesale, logistics, sourcing, retail, and digital, among other categories.
During Miller’s leadership, SPARC ramped up the digital presence of its brands. Monthly web visitors for SPARC brands currently total 57 million, indicating that the next CEO’s skill set will likely include an understanding of digital as that channel continues to grow. Familiarity with mergers and acquisitions is also probably a prerequisite given the joint venture’s penchant for deals and the know-how needed to onboard the new brands onto the SPARC platform.
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