Former Gap Inc. CEO Art Peck has plans to continue his fashion career as chief executive and board chair of a Cayman Islands-incorporated special purpose acquisition company (SPAC) dubbed Good Commerce Acquisition Corporation, according to documents filed this week with the Securities and Exchange Commission.
The goal is to raise $200 million, or as much as $230 million, to launch a company that is "data-led, agile, and community-driven with differentiated strength in both direct-to-consumer eCommerce as well as traditional retail and wholesale" into the stock market.
Gary Wassner, CEO of fashion-oriented financial services company Hilldun, is vice chairman of the new entity, and Abinta Malik, who previously led children's merchandising at Old Navy and later Gap Inc.'s mainland China, Hong Kong and Taiwan business, is president
In his 15 years at Gap, five of those as CEO, Peck was known more for his business consulting acumen than his merchant abilities, something some critics blame at least in part for the company's downfall, especially at its namesake brand.
In a prospectus laden with financial buzzwords, Good Commerce sticks to generalities about its goals but sounds up to date in its marketing. The company doesn't yet have an acquisition target, per its filing.
"Our brands will be rooted in social and environmental responsibility, reflecting the values that today’s consumers demand," the company said in its filing. "We believe this modern approach will create long-term value for our shareholders."
The company does hint that it will look for undervalued businesses. "Our management team’s objective is to generate attractive returns and create value for our shareholders by applying a disciplined strategy of underwriting intrinsic worth and affecting changes after making an acquisition to unlock value," the filing said.
This may not be great timing. The news comes amid a Reuters report that the SEC has begun scrutinizing the proliferation of SPAC entities, also known as "blank check" companies, which allow businesses to go public via acquisition rather than through an initial public offering. The SEC declined to comment Thursday.