Ex-Gap CEO Art Peck launches $200 million IPO for apparel-focused SPAC

By

Robin Driver

Published
Mar 25, 2021

Former Gap CEO Art Peck has filed paperwork for an IPO seeking to raise $200 million for Good Commerce Acquisition Corp, a special purpose acquisition company (SPAC) focused on the apparel sector and related industries.

 
According to the S-1 filing made by Peck and other executives with the U.S. Securities and Exchange Commission on Monday, the company’s “objective is to create a next-generation consumer holding company by combining exceptional brands and leadership teams in the apparel & accessories, outdoor, health and wellness, home and other consumer-related industries.”
 
The filing further specifies that the SPAC will target brands “that sit on modern, nimble technology.” The company will not, however, disregard retailers with a brick-and-mortar presence – as noted by the filing, “stores of the right size and in relevant locations make money.”

Peck will serve as CEO of the company, which will list on the Nasdaq, but has not yet proposed a ticker symbol.
 
As it stands, Good Commerce Acquisition Corp’s IPO will see 20 million investing units offered for $10 each. Every unit will consist of one Class A share and 0.33 warrants that entitle the holder to purchase a second share for $11.50 in the future.
 
Underwriters are also being given the option to buy 3 million units for overallotments, which could result in another $30 million coming in. The company’s sponsor plans to invest $6 million in order to buy 4 million warrants for $1.50 each, an investment that will rise to $6.6 million for 4.4 million units in the case that underwriters exercise all overallotment options.
 
Peck served as CEO at Gap from 2014 to 2019. Over a period of 14 years at the company, he also held the roles of president of Gap North America, president for outlet stores, and president for growth, innovation and digital, among others.
 
The executive is joined at Good Commerce Acquisition Corp by fellow Gap alum Abinta Malik, who worked at the American fashion retailer for more than 20 years. Before exiting the company in 2020, her last role was EVP for loyalty, payments, customer and strategy team, and interim head of digital.
 
SPACs are companies that are set up in order to raise funds to buy or merge with other companies. They have become a Wall Street trend over the last year, with some 200 SPACs going public in 2020 alone, according to CNBC.