The new company, which is exploring its strategic options for Forever 21, is being led by Marc Rosen and expects to grow the brands in its portfolio while producing cost savings.

Catalyst Brands combines Sparc Group brands Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica with JCPenney and its private label brands, Stafford, Arizona and Liz Claiborne.

The department store chain said that the all-equity merger brings its banner and various exclusive private brands under the same umbrella as Sparc’s portfolio, which includes Eddie Bauer, Lucky Brand and Nautica.

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,