DALLAS — 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, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica with JCPenney and its exclusive private brands, including Stafford, Arizona and Liz Claiborne.
Marc Rosen, who has led JCPenney, is the CEO of Catalyst Brands. The new company is headquartered at the current corporate location North Texas with offices in New York, Los Angeles and Seattle.
The new Catalyst Brands has over $9 billion in revenue, 1,800 store locations, 60,000 employees and $1 billion of liquidity. The combined organization is a joint venture formed in an all-equity transaction between JCPenney and Sparc, with shareholders Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein.
“Catalyst Brands brings together the rich heritage of six unique brands with modern energy and a new vision for success,” Rosen said in a statement. “We will leverage our resources and best-in-class industry talent to grow our brands further.”
Traditional retailers are looking for new ways to strengthen their prospects and have sometimes teamed up with others. Last month, Saks Global completed a $2.7 billion deal with Neiman Marcus Group, which was based in Dallas.
Catalyst Brands will integrate complementary strengths, including strong product design and sourcing capabilities, deep supplier relationships and a growing use of data-driven and AI technology, it said.
The company noted it sold the U.S. operations of Reebok and is exploring strategic options for Forever 21.
