JCPenney is merging with a company that owns several other retailers that have also struggled as malls have declined in popularity across the U.S. The 123-year-old department store chain and SPARC Group have combined to form Catalyst Brands,

Sparc Group, the parent company of Forever 21 and Aéropostale, announced it merged with JCPenney to create a new company called Catalyst Brands.

Catalyst Brands has its headquarters within JCPenney’s corporate headquarters in Plano, TX. It also has offices in New York, Los Angeles, and Seattle. JCPenney has 50,000 employees, with over 650 stores in the U.S. and Puerto Rico. In 2022, the retailer celebrated its 120th Anniversary.

The transaction was announced Jan. 8 with the new company launching with $9 billion in revenue, 1,800 stores and 60,000 employees.

The new company, which is exploring its strategic options for Forever 21, is being led by Marc Rosen and expects to grow the brands in its portfolio while producing cost savings.

Catalyst Brands combines SPARC Group's Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica with JCPenney and its exclusive in-house labels such as Stafford, Arizona, and Liz Claiborne.

JCPenney and SPARC Group announced their merger to form Catalyst Brands, combining six major retail brands under one portfolio.