Five things to know about the newly merged JCPenney company

Plano’s JCPenney and a retail company called Sparc Group announced a merger to form a new company in the market.

The company, called Catalyst Brands, brings together several brands known to shopping malls amid changing demands and challenges in the retail market. The new effort creates a larger and more diverse company that can compete with competitors ranging from department stores to small clothing stores.

It includes half a dozen brands

The brands reach markets that can skew older and younger, more formal and less. They include AeropostalBrooks Brothers, Eddie Bauer, Lucky Brand and Nautica along with JCPenney.

In addition, Catalyst Brands has sold Reebok’s US operations and is exploring strategic options for the operation of Forever 21.

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The management is well known

Marc Rosen, former CEO of JCPenney, has become CEO of Catalyst Brands. Rosen assumed the role of CEO in 2021, and his previous experience included stints at Levi Strauss and Walmart.

With the change, Michelle Wlazlo, formerly chief merchandising and supply chain officer for JCPenney, was promoted to Brand CEO for JCPenney.

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It is not small

The new Catalyst Brands has over $9 billion in revenue, 1,800 store locations, 60,000 employees and $1 billion in cash.

It is locally based

Catalyst Brands is headquartered at JCPenney’s current corporate location in Plano, along with offices in New York, Los Angeles and Seattle.

Key supporters are not new to JCPenney

The combined Catalyst Brands is a joint venture formed in an all-stock transaction between JCPenney and Sparc, with shareholders Simon Property Group, Brookfield Corp., Authentic Brands Group and Shein. Before the merger that created Catalyst Brands, JCPenney was owned by Simon, Brookfield and Authentic.