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The 123-year-old department store chain and SPARC Group have combined to form Catalyst Brands, the new company said in a news release on Wednesday, Jan. 8. SPARC Group is the operator of stores including Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand, and Nautica.
Former JCPenney CEO Marc Rosen will become the CEO of Catalyst Brands, which boasts more than $9 billion of revenue and about 60,000 employees at 1,800 stores.
"Catalyst Brands brings together the rich heritage of six unique brands with modern energy and a new vision for success," Rosen said. "The word 'catalyst' reflects our drive to accelerate innovation and energy and amplify the impact of this powerhouse portfolio. Together, we bring scale, expertise, and broad appeal to customers across America."
The merger joins two entities with huge financial backing from Simon Property Group. The mall investment firm's portfolio included 243 properties around the world at the end of 2022, according to MarketScreener.
Simon Property Group purchased JCPenney for $1.75 billion after it filed for bankruptcy in 2020. Simon is also a part-owner of SPARC Group, which was formed after Simon helped acquire SPARC's individual brands.
JCPenney's private labels, including Stafford, Arizona, and Liz Claiborne, will join SPARC Group's brands under the Catalyst umbrella. From teen fashion to outdoor gear and formalwear, the merger aims for clothing that covers every corner of the market.
Catalyst Brands also said it hopes to streamline operations, expand its customer base, and strengthen its presence in shopping malls nationwide.
"Our relationships with more than 60 million customers and the deep data we have create a compelling consumer value proposition across our brands," said Rosen. "We can design a more personalized shopping experience, offer unified loyalty and credit card programs, and ultimately, cross-sell more effectively."
Catalyst Brands will operate from JCPenney’s headquarters in Plano, Texas, with regional offices in New York City, Los Angeles, and Seattle.
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