The Human Cost: Catalyst Brand Layoffs

DMs from real people

Mar 13, 2025

I am not a vengeful ex-employee. I worked so hard to be where I was in my career. I was very passionate about the brands and Sparc. I trusted my leaders to be honest, straight forward, and compassionate as they had mentored me to be.

This is so unfortunate.

At the end of February, Catalyst Brands laid off 5% of their corporate staff. That’s about 250 people.

Catalyst owns several brands, including:

J.C. Penney
Aéropostale
Brooks Brothers
Eddie Bauer
Nautica
Lucky Brand

Here’s how the layoffs are affecting real people in the field.

I pieced together DMs I received from affected employees.

These are their stories.

Growth and opportunity

Leaders told us that JCPenney was merging with SPARC brands. Forever 21 would find a new operator on its own.

They said that they were committed to full transparency. The following week, we met the new Head of Stores during a corporate leadership meeting. We also met other Catalyst leaders. The new Head of Stores announced that JCPenney and Sparc were merging districts. They said business would continue as normal. No one ever said anything about layoffs, job losses, or a reduction in workforce.

When the merge happened, they told us they would be observing the business for the next 100 days. The end of those 100 days would be around Easter.

Sparc reinforced the message of “growth and opportunity” because there were so many brands under one roof. Sparc leaders said JCPenney would bring more opportunity. District Managers (DMs) thought there would be cuts at some point and were worried.

Each region had a welcome Teams meeting with the new Head of Stores. Each DM introduced themselves and their businesses. These were stressful because of the talk of the companies joining together. Stores were being realigned. It felt like all DMs' jobs were being considered for layoffs.

They informed us a few days after the region's meet-and-greets. An update call was scheduled for March 12th. This call would cover progress reports and our strategy moving forward.

Then they hit us with an email. On Wednesday, they emailed everyone about a 5% cut to the corporate workforce. Team invites would be sent to those affected, mostly on that same day.

If you got your Teams invite, you knew you were gone.

Some people had to wait hours after getting their invite for the layoff meeting. Some waited all day for their Teams invite. They knew it meant losing their job.

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No warning

We expected cuts, but Sparc leaders assured us we would be given a heads-up before being let go. Many of those laid off were newly promoted. Some had just relocated for promotions.

We got no warning at all, except for that email on Wednesday about the cuts.

All company devices, like laptops and iPads, were locked within 20 minutes. Phones lost access two days later. A Regional VP sent a copy-and-paste text to DMs that were laid off in the guise of being personal, heartfelt messages.

Business results were not considered in the layoffs. Several DMs who kept their jobs were bottom performers for Sparc. It seems more Sparc DMs were let go than JCPenney. Some DMs that were let go had a tenure of 20+ years.

Values month

The next day, during a store call, a corporate leader from JCPenney, now the Catalyst leader, said changes were happening quickly. They asked everyone to be patient, noting, “this is like flying a plane with no wings.” A wild comment given the plane accidents that have happened recently.

We were given severance based on our time of service with the company.

Catalyst is not considering its own values and public commitments. When these layoffs happened, it was “Values Week.”

The Sparc Company lists these as core values:

teamwork
integrity
inclusivity
respect
accountability
compassion

February is “Values Month”.

We had a calendar that showed each week's value. Each day had a different focus.

Each weekend, it was suggested that team leaders show appreciation. They could post thank-you notes or similar gestures. Many also bought small gifts for their co-workers.

Each weekday, a different idea was shared. Leaders rallied to share pictures in the region. The community had themes like Motivational Monday, Teamwork Tuesday, What’s Good Wednesday, Thank You Thursday, and High Five Friday.

Regional managers posted a video about the value of the week every Monday. Each store/district was supposed to choose a charity for the team to donate to or work with as part of values month.

We got laid off during Values Month. Respect and Integrity were the focus of the week.

(End of DMs).

“Companies merge, jobs get cut, and leaders are running stores with paper clips and duct tape.”

Core values are important, and layoffs are never easy.

When companies reduce staff, they often lack time. Keeping people during Values Month probably isn't considered.

But it still hits hard.

District managers are out in the field every day working their asses off trying to make sure stores have what they need to stay afloat. Thriving is no longer the goal because companies merge, jobs get cut, and leaders are running stores with paper clips and duct tape.

The current job market is hideous. These leaders were thrown into the deep end of an already very crowded swimming pool with no lifeguard.

We hear about retail as a business. We track numbers on charts. But we don’t ever get to hear these stories. The shock and disappointment delivered during Values Week.

Retail is people, and people are the most important thing in running a successful business.

This is why The Voice of the Frontline exists.

To give people in the field a chance to share their side of the story.

Thank you to everyone who shared their stories with me.