J.C. Penney Merges with Struggling Clothing Brands to Form Catalyst Brands

J.C. Penney, the 123-year-old department store chain, has announced its merger with SPARC Group, which owns several underperforming clothing brands, including Aeropostale, Brooks Brothers, and Forever 21. This merger will result in the formation of a new company called Catalyst Brands.

Industry analysts suggest that the merger will allow the brands to benefit from cross-marketing opportunities, cost reductions, and shared talent across the portfolio. The all-equity deal to establish Catalyst Brands will combine $9 billion in revenue, 60,000 employees, and 1,800 stores.

Marc Rosen, the current CEO of J.C. Penney, will lead the newly formed company.

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