Lucky, Forever 21 Operator Merges With JCPenney (1)

Sparc Group, the operator of fashion brands including Lucky, Eddie Bauer, Aeropostale, Forever 21 and Brooks Brothers, has merged with JCPenney to form a new company called Catalyst Brands, according to a release Wednesday afternoon.

The joint venture was formed in an all-equity transaction between JCPenney and SPARC Group and its shareholders Simon Property Group, Brookfield Corp., Authentic Brands Group and SheIn Group Ltd., according to the release. Catalyst will be headed by former JCPenney Chief Executive Officer Marc Rosen.

Combined, Catalyst has about $9 billion of revenue, 1,800 store locations, 60,000 employees and $1 billion of liquidity, according ...