JCPenney has merged with Aéropostale owner SPARC Group to form a new clothing retail powerhouse known as Catalyst Brands.
Catalyst will incorporate JCPenney and Aéropostale, alongside SPARC’s other brands, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica, a statement said.
Combined, the brands were said to have reached 60 million customers over the past three years and would boast some US$9 billion in revenue.
Catalyst would have 1,800 store locations, 60,000 employees and US$1 billion of liquidity, the statement added.
“Together, we bring scale, expertise and broad appeal to customers across America,” former JCPenney boss and new Catalyst chief executive Marc Rosen commented.
“We can design a more personalized shopping experience, offer unified loyalty and credit card programs, and ultimately, cross-sell more effectively.
“That’s one example of the many benefits we’ll see in this combination. With a clean balance sheet, we’re in great position to move forward.”
The deal followed an all-equity transaction between JCPenney and SPARC Group involving shareholders Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein.
Catalyst had also sold the US operations of Reebok, the statement said, while strategic options for the Forever 21 brand were being explored.