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

JCPenney and SPARC Group today announced that they have combined to form a new organization, Catalyst Brands, creating an unmatched portfolio of six iconic retail banners that celebrate the essence of American style.

The joint venture brings together Sparc Group’s Aeropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica with JCPenney.

The transaction was announced Jan. 8 with the new company launching with $9 billion in revenue, 1,800 stores and 60,000 employees.

The new company, which is exploring its strategic options for Forever 21, is being led by Marc Rosen and expects to grow the brands in its portfolio while producing cost savings.

JCPenney and SPARC Group announced their merger to form Catalyst Brands, combining six major retail brands under one portfolio.

The department store chain said that the all-equity merger brings its banner and various exclusive private brands under the same umbrella as Sparc’s portfolio, which includes Eddie Bauer, Lucky Brand and Nautica.

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,