Known as Catalyst Brands, the new company includes Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, Nautica and JCPenney. The joint venture was formed in an all-equity transaction between JCPenney and Sparc Group, with shareholders Simon Property Group, Brookfield Corporation, Authentic Brands and fast fashion company Shein.

The joint venture brings together Sparc Group’s Aeropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica with JCPenney.

Sparc was formed in 2016 by Simon, Brookfield and Authentic Brands Group, and fast fashion retailer Shein was brought in as a minority owner in 2023.

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

The department store chain is teaming up with the Sparc Group in an all-equity merger to form Catalyst Brands, the Wall Street Journal reported. The company will be led by Marc Rosen, who most recently served as the chief executive officer of JCPenney. It will be based in Plano, Texas, where JCPenney is headquartered.

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

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.

JCPenney is combining with the owner of fellow shopping mall staples Aéropostale and Lucky Brand after a merger of two brand portfolios in an all-equity transaction Wednesday.

The joint venture brings together Sparc Group’s Aeropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica with JCPenney.

JCPenney announced Thursday the company merged with SPARC Group, to form a larger retail organization called Catalyst Brands.