123-Year-Old Department Store To Merge With Forever 21 Owner

JCPenney has merged with Sparc Group, the owner of several well-known brands, including Forever 21, to create a new company called Catalyst Brands. The merger, announced on Wednesday (January 8), forms a joint venture that combines JCPenney with Sparc Group's brands, such as Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica.

Catalyst Brands will launch with $9 billion in revenue, 1,800 store locations, and 60,000 employees. The new company aims to leverage synergies through cost reduction, cross-marketing, and talent sharing. Marc Rosen, the former CEO of JCPenney, will lead Catalyst Brands, which will be headquartered in Plano, Texas.

The merger is backed by major shareholders, including Simon Property Group, Brookfield Corporation, Authentic Brands Group, and Shein Group Ltd.

JCPenney's press release highlights that Catalyst Brands will explore strategic options for Forever 21 and has already sold Reebok's U.S. operations. The new company aims to enhance customer experiences through personalized shopping, unified loyalty programs, and effective cross-selling. Catalyst Brands seeks to integrate its strengths in product design, sourcing, and data-driven technology to grow its market presence.