Sparc Group, the parent company of Forever 21 and Aéropostale, announced it merged with JCPenney to create a new company called Catalyst Brands.

JCPenney is joining forces with a large conglomerate to form an even bigger powerhouse in the retail space. The department store chain is teaming up with the Sparc Group in an all-equity merger to form Catalyst Brands,

JCPenney announced Thursday the company merged with SPARC Group, to form a larger retail organization called Catalyst Brands.