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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 some of the biggest names in retail, overseeing some 1,800 stores.

Zoom in: Catalyst was formed via an all-equity transaction between the department store chain JCPenney and Sparc Group's shareholders Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein.

JCPenney CEO Marc Rosen will lead the new Plano, Texas-based entity.

The latest: In its first moves, the new entity has sold Reebok's U.S. operations (a new licensee will be announced) and is exploring strategic options for Forever 21.

Authentic declined to clarify whether the options for Forever 21 could include its IP.

Zoom out: Catalyst will operate JCPenney's 650-plus locations as well as the U.S. stores for Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand and Nautica.

It will also include the private brands Stafford, Arizona and Liz Claiborne.

By the numbers: The company will have more than $9 billion of revenue and $1 billion of liquidity.

Catch up quick: JCPenney was acquired out of bankruptcy during the pandemic by Simon and Brookfield in a bid to stabilize their mall operations.

Sparc was formed by Simon and Authentic to handle the retail operations of brands acquired by Authentic.

Fast-fashion retailer Shein was brought in as a minority owner of Sparc in 2023.

What they're saying: "Our relationships with more than 60 million customers and the deep data we have create a compelling consumer value proposition across our brands," Rosen said in a statement. 

"With a clean balance sheet, we're in great position to move forward," Rosen added.

Simon, Brookfield and Shein did not immediately respond to a request for comment. 

JCPenney and store operator merge to create apparel behemoth Catalyst

The combined entity will have $9 billion in revenue and operate 1,800 stores.

Shoppers perusing goods near a JCPenney store entrance.

JCPenney's Michelle Wlazlo and David Beckham promote the soccer star's fragrance. Photo: Monica Schipper/Getty Images for David Beckham Fragrances/Coty Inc.

JCPenney and <a class="gtmContentClick" data-vars-link-text="retail store operator Sparc" data-vars-click-url="https://www.axios.com/pro/retail-deals/2023/08/24/shein-authentic-sparc-partnership-forever-21" data-vars-content-id="b2ddf307-5f28-4ebb-937a-fe0dbe51812c" data-vars-headline="JCPenney and store operator merge to create apparel behemoth Catalyst" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/retail-deals/2023/08/24/shein-authentic-sparc-partnership-forever-21" target="_self">retail store operator Sparc</a> are merging to form a U.S. retailing behemoth <a class="gtmContentClick" data-vars-link-text="called Catalyst Brands" data-vars-click-url="https://www.businesswire.com/news/home/20250108232559/en/SPARC-Group-Has-Merged-With-JCPenney-to-Form-Catalyst-Brands" data-vars-content-id="b2ddf307-5f28-4ebb-937a-fe0dbe51812c" data-vars-headline="JCPenney and store operator merge to create apparel behemoth Catalyst" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.businesswire.com/news/home/20250108232559/en/SPARC-Group-Has-Merged-With-JCPenney-to-Form-Catalyst-Brands" target="_blank">called Catalyst Brands</a>.Why it matters: The new company&#x27;s owners comprise a consortium of some of the biggest names in retail, overseeing some 1,800 stores.

JCPenney and store operator merge to create apparel behemoth Catalyst

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