Subway Acquired by Roark Capital; SHEIN Aligns with SPARC Group

Jennifer Guhl
Contributor Writer
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Subway and SHEIN are both engaging in new strategic business alignments, helping to expand their business operations and support the needs of their customers better. 


Subway will be acquired by affiliates of Roark Capital, signaling a significant milestone in Subway’s multi-year transformation journey. The timing to close the transaction has yet to be determined.

The announcement comes after Subway announced its 10th consecutive quarter of positive same-store sales. The acquisition will allow Subway to continue to focus on long-term strategies, including sales growth, menu innovation, modernization of restaurants, overall guest experience improvements, and international expansion. 

"This transaction reflects Subway's long-term growth potential and the substantial value of our brand and our franchisees around the world," said John Chidsey, CEO of Subway. "Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests, and our employees."

A private equity firm with $37 billion in assets under management, Roark’s specialization in restaurant franchise business models will allow Subway to leverage its global presence and brand strength for continued growth and expansion.  

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Fashion retailer SHEIN will partner with SPARC Group Holding II LLC (SPARC Group), helping the retailer better meet the needs of their customers in the U.S. and globally.

Within the agreement, SHEIN will have approximately one-third interest in SPARC Group, which includes Authentic Brands Group and Simon Property Group. At the same time, SPARC will become a minority shareholder in SHEIN. SPARC Group will leverage SHEIN’s e-commerce expertise and global reach to further the growth of its brands, including Forever 21.

“The powerful combination of Simon's leadership in physical retail, Authentic's brand development expertise, and SHEIN's on-demand model will help us drive scalable growth and together make fashion more accessible to all,” said Donald Tang, executive chairman for SHEIN.

The partnership will boost SPARC Group’s distribution of Forever 21, bringing greater product variety and value to SHEIN’s existing customer base. SHEIN will also be able to use Forever 21 locations across the U.S. to test customer-focused experiences, including shop-in-shops, giving customers access to make returns in-store.

"By working together, we will provide even more innovative and trendsetting products to fashion enthusiasts around the world,” said Marc Miller, CEO of SPARC Group.

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