8 ON YOUR SIDE: JCPenney merges with Forever 21 owner
A few years after filing for bankruptcy, JCPenney has a new plan for the future.
The 123-year-old department store chain is merging with “Sparc Group,” a company that owns several struggling clothing brands including Aeropostale, Brooks Brothers and Forever 21.
This partnership will create a new company named “Catalyst Brands.”
Analysts say this combination of clothing stores will likely benefit from cross-marketing, cost reduction and talent sharing.
The all-equity transaction to kick off Catalyst comes with $9 billion in revenue, 60,000 workers and 1,800 stores.
It will be led by JCPenney CEO Marc Rosen.
