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

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 operator of fashion brands including Lucky, Eddie Bauer, Aeropostale, Forever 21 and Brooks Brothers, has merged with JCPenney to form a new company called Catalyst Brands, according to a release Wednesday afternoon.

JCPenney filed for bankruptcy protection in 2020 and was acquired by Simon Property and Brookfield Asset Management for $800 million.

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.

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

JCPenney is merging with a retail company with household names to form a new one based in Plano, Texas. The longtime local retailer and Sparc Group announced they have combined to form Catalyst Brands and will cover several brands: Aéropostale,