JSFiddle - React, Tailwind, and code Playground
HTML
<link rel="stylesheet" href="http://ajax.googleapis.com/ajax/libs/jqueryui/1.8/themes/dot-luv/jquery-ui.css">
<ul class="catalog">
<li>header 1
<ul>
<li>subcat 1
<ul>
<li>subcat subcat 1</li>
<li>subcat subcat 2</li>
<li>subcat subcat 3</li>
</ul>
</li>
<li>subcat 2</li>
<li>subcat 3</li>
</ul>
</li>
<li>header 2
<ul>
<li>subcat 4</li>
<li>subcat 5</li>
<li>subcat 6</li>
</ul>
</li>
</ul>
CSS
ul { padding-left: 10px; }
JavaScript
$(".catalog > li").wrapAll("<li><div class='something'><ul></ul></div></li>");