JCPenney, a department store chain owned by Simon Property Group (NYSE:SPG) and Brookfield Asset Management (NYSE:BAM), has merged with SPARC Group to form a new company called Catalyst Brands. The joint venture will house SPARC's brands Aéropostale,

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 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,

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