JCPenney has announced its merger with SPARC Group, the parent company of well-known retailers like Eddie Bauer, Brooks Brothers, and Nautica. This new partnership will create a new entity called Catalyst Brands.
The newly formed company will be backed by shareholders from major names like Brookfield Corporation, Authentic Brands Group, Shein, and Simon Property Group, a significant mall operator. Along with JCPenney, Catalyst Brands will also manage other brands like Stafford, Arizona, and Liz Claiborne, which JCPenney owns.
Catalyst Brands will be led by Marc Rosen, the former CEO of JCPenney, who now holds the role of the company’s CEO. The company has revealed that it has successfully sold the U.S. operations of Reebok and is currently looking at different options for the operations of Forever 21.
With a combined revenue of $9 billion, Catalyst Brands now operates 1,800 store locations and employs around 60,000 people. The company also has $1 billion in liquidity, which should help with its ongoing operations. Over the last three years, its brands have reached over 60 million customers, a significant milestone for the newly merged entity.
JCPenney, which was once publicly traded, had to be delisted from the New York Stock Exchange (NYSE) in May 2020 after it filed for Chapter 11 bankruptcy. The merger with SPARC Group marks a new chapter for the retailer as it aims to expand its presence and offer a broader range of well-known brands to its customers.
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