Former Gap CEO Art Peck has revealed plans to launch an initial public offering (IPO) for Good Commerce Acquisition Corp, a special purpose acquisition company (SPAC) with a focus on the apparel sector and related industries. The aim of the IPO is to raise $200 million for the company.

Peck, who served as CEO of Gap from 2014 to 2019, submitted the necessary paperwork to the U.S. Securities and Exchange Commission on Monday. Good Commerce Acquisition Corp has the goal of creating a next-generation consumer holding company by bringing together outstanding brands and leadership teams in various consumer-related industries, including apparel and accessories, outdoor, health and wellness, and home.

The SPAC intends to target brands that utilize modern and agile technology. However, the filing also acknowledges the profitability of brick-and-mortar stores that are of the appropriate size and in suitable locations.

Peck will assume the role of CEO for the newly formed company, which plans to list on the Nasdaq stock exchange. The ticker symbol for the company is yet to be determined. The IPO will offer 20 million investing units at a price of $10 each. Each unit will consist of one Class A share and 0.33 warrants, granting the holder the option to purchase a second share in the future for $11.50.

In addition to the initial offering, underwriters will have the option to purchase an additional 3 million units, potentially raising an extra $30 million. The company’s sponsor plans to invest $6 million to acquire 4 million warrants at $1.50 each. If the underwriters exercise the overallotment options fully, the investment will increase to $6.6 million for 4.4 million units.

Peck brings significant experience in the retail industry to Good Commerce Acquisition Corp, having held various leadership positions at Gap over a span of 14 years. His expertise includes serving as president of Gap North America, president for outlet stores, and president for growth, innovation, and digital.

Abinta Malik, another former Gap executive, joins Peck at Good Commerce Acquisition Corp. Malik worked at Gap for over 20 years and held roles such as EVP for loyalty, payments, customer, and strategy team, as well as interim head of digital.

SPACs have become increasingly popular on Wall Street in recent years. These companies are established to raise funds for the purpose of acquiring or merging with other companies. The growing trend is evident from CNBC’s report that approximately 200 SPACs went public in 2020 alone.

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