JCPenney is merging with a company that owns several other retailers that have also struggled as malls have declined in popularity across the U.S. The 123-year-old department store chain and SPARC Group have combined to form Catalyst Brands,

JCPenney and SPARC Group today announced that they have combined to form a new organization, Catalyst Brands, creating an unmatched portfolio of six iconic retail banners that celebrate the essence of American style.

The transaction was announced Jan. 8 with the new company launching with $9 billion in revenue, 1,800 stores and 60,000 employees.

Catalyst Brands was formed in an all-equity deal between JCPenney and SPARC, with shareholders Simon Property ( NYSE: SPG ), Brookfield ( NYSE: BAM ), Authentic Brands and Shein. Financial terms were not disclosed.

JCPenney and SPARC Group, which holds a portfolio of brands including Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica, have formed a joint venture in an all-equity transaction to create Catalyst Brands. The new company launches with more than $9 billion in revenue, 1,800 store locations and 60,000 employees.

JCPenney and retail store operator Sparc are merging to form a U.S. retailing behemoth called Catalyst Brands. Why it matters: The new company's owners comprise a consortium of so