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.

JCPenney has merged with the owner of several retail brands to create a brand new company. On Jan. 8, JCPenney merged with SPARC Group, the owner of the following companies: Through the merger, JCPenney and SPARC Group created Catalyst Brands.

The department store chain said that the all-equity merger brings its banner and various exclusive private brands under the same umbrella as Sparc’s portfolio, which includes Eddie Bauer, Lucky Brand and Nautica.

The longtime local retailer and Sparc Group announced they have combined to form Catalyst Brands and will cover several brands: Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica with JCPenney and its exclusive private brands, including Stafford, Arizona and Liz Claiborne.

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.

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.

JCPenney and SPARC Group, which holds a portfolio of brands including Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica, have formed a joint venture in an all-equity transaction to create Catalyst Brands. The new company launches with more than $9 billion in revenue, 1,800 store locations and 60,000 employees.

JCPenney and retail store operator Sparc are merging to form a U.S. retailing behemoth called Catalyst Brands. Why it matters: The new company's owners comprise a consortium of so